On Thursday, August 23, U.S.-based cryptocurrency exchange Bittrex and Rialto Trading, a next-generation Alternative Trading System (ATS), announced the launch of a new digital currency securities trading platform. According to the press release, these two companies are currently working with the regulators to get an approval for “blockchain-based securities”.
This newly proposed digital securities trading platform will be developed with the Rialto’s experience of a licensed broker-dealer ATS as well as Bittrex’s experience in blockchain technology, digital currency trading, wallets, and cybersecurity.
If the two companies get a regulatory license, Rialto will be launching a wide range of securities offerings including “issuance advisory services, placement, trading, and custody.” The press release also notes that Rialto’s ATS will support U.S. Dollar trading of digital securities.
Rialto Trading CEO Shari Noonan showed optimism on the launch of this new crypto securities trading platform and its partnership with Bittrex saying:
“We are excited to share Rialto’s expertise in building networks and trading solutions in the regulated securities industry to develop this new venture in partnership with Bittrex. By working together, we’ll be able to expand our current client offerings to not only include digital securities, but also provide them access to a globally advanced and reliable trading platform.”
Bittrex CEO Bill Shihara shared Noonan’s optimism and this partnership which will further push the blockchain adoption. Shihara said:
“It takes a unique combination of advanced technology and financial expertise to build and launch an efficient, reliable and secure platform for trading digital securities, and we found the ideal partner in Rialto and its CEO Shari Noonan. We’re merging Bittrex’s technology, cybersecurity and blockchain expertise with Rialto’s deep knowledge of the securities industry. And, when you add that foundation with Rialto’s extensive background in financial services, including Shari’s experience at Goldman Sachs and Deutsche Bank, this new venture is well-positioned to further advance blockchain’s adoption by offering a comprehensive solution at the right time.”
The crypto securities trading platform is already up for use wherein the accredited institutional investors, American-registered broker-dealers and digital security issuers can show their interest by registering on the platform.
This partnership sets Bittrex straight in competition with U.S. crypto operator Coinbase which has also approached the U.S. Securities and Exchange Commission (SEC) to get registered as a regulated broker-dealer. If Coinbase manages to get the licenses approved from SEC and the Financial Industry Regulatory Authority, it will soon be able to offer blockchain-based securities.
As a part of pushing its plans further, Coinbase has also been acquiring several regulated companies like Venovate Marketplace, Keystone Capital Corp., and Digital Wealth LLC.
“This step forward is being made possible by our acquisition of a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license,” Coinbase mentioned in its blog post.