The first regulated blockchain-based equity trading platform BSTX will go live thanks to US Securities and Exchange Commission (SEC) approval.
The creators of the BSTX exchange are the operator of the Boston Options Exchange BOX Digital and the trading platform of security tokens tZERO, affiliated with Overstock.
The platform will be available to both retail and institutional investors.
Consideration of the application lasted almost a year – the company filed her in April 2020. Initially plannedthat BSTX will be an Ethereum-based STO platform. But the Commission is such an application rejected.
The approval of the regulator in the company BSTX was explained by the banal compliance of the platform with the rules National market system. Additionally, the SEC made it a condition for BSTX to participate in the intermarket surveillance group. This structure is used to coordinate regulatory compliance.
“We are committed to providing the capital markets with modern tools for issuers and investors,” said BSTX CEO Lisa Fall.
At this stage, the BSTX team expects to offer regulated cryptoassets to clients. The platform is ready to act as an industry sandbox to develop ideas for improving listing and trading.