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The launch of this regulated security exchange set a “significant milestone” in the integration of the traditional finance and the blockchain industry.
BOX Digital Markets, a Boston Stock Exchange Company has formed a joint partnership with Overstock subsidiary tZero to launch the first-of-its-kind regulated security token exchange. According to the official announcement made on Tuesday, May 18, 2018, the exchange will list and even publicly trade security tokens for the companies that issue and convert the existing stock into security tokens.
The exchange will also facilitate the trading of the blockchain tokens that are classified as securities under the federal regulations. The joint venture will basically capitalize on the regulatory approval obtained by tZero in order to operate as an alternative trading system (ATS).
This move seems to have been taken as a response to SEC’s regulations to classify some digital tokens as securities. The financial regulatory body has earlier made it clear that any business which wants to function as an ATS needs to get itself registered with the agency as a broker-dealer and thus become a member of the self-regulating organization such as FINRA.
Developed under the regulatory supervision, the new platform would also be able to conduct and hold secure Initial Coin Offerings (ICOs). Lisa Fall, who currently serves as CEO of BOX Digital and as president of BOX Options Exchange LLC, would be the CEO of the joint venture.
While commenting on this new partnership, Lisa said:
“tZERO has proven to be a pioneer in the development and practical use of blockchain technologies for capital markets for a number of years,”
She further added that
“tZERO’s track record and accomplishments in this innovative area, coupled with BOX’s expertise in operating a highly efficient and transparent equity options marketplace, made partnering together an easy decision and we look forward to building a world-class platform for listing and trading security tokens.”
This new joint venture is a “significant milestone” in the integration of the traditional finance and the blockchain industry, said Saum Noursalehi, who recently assumed the chief executive post at tZero. Noursalehi further added that:
“Our partnership with BOX Digital Markets is a significant milestone that will create the first SEC-regulated exchange designed to efficiently trade crypto securities. Lisa Fall’s leadership, reputation and deep experience in the regulated securities exchange industry will be a major asset in achieving this objective.”
“Together, we will continue to work with the SEC as we develop a first-of-its-kind platform that will integrate blockchain capital markets into the current U.S. National Market System,” he added.
The new joint venture in equally owned by tZero and BOX digital.