First blockchain-based securities exchange approved in the US
The Securities and Exchange Commission (SEC) in the US has given the go-ahead for Boston Security Token Exchange (BSTX) to launch the nation’s first regulated blockchain-enabled securities exchange
BTSX’s blockchain solution looks to settle transactions within the same day or a day after while providing proprietary and transparent blockchain data feeds
Company board member Alan Konevsky describes it as a “watershed event in the digital evolution of the securities markets and the trading experience”
The blockchain-based BSTX says it will offer clients faster settlements, secure market data, and give early-stage companies access to liquidity. The exchange will serve as the listing market for eligible companies and issuers of exchange-traded products.
Apart from operating on a blockchain, one of the key differences from a traditional exchange such as the New York stock exchange is that BSTX will offer same-day or next-day pay settlements.
The SEC said in a statement the blockchain-enabled exchange is consistent with its requirements in that it will serve to prevent fraud and promote fair trade, but also to “perfect the mechanism of a free and open market and a national market system; and, in general, to protect investors and the public interest.”
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