TECH: The new US stocks exchange will use blockchain to track trading activity.

This week, the first US blockchain-based exchange received reg­u­la­to­ry approval from the Secu­ri­ties and Exchange. In a fil­ing the SEC uploaded to its web­site late Thurs­day, he said the Boston Secu­ri­ty Token Exchange (BSTX) could use the emerg­ing tech­nol­o­gy to offer faster trade settlements.

Com­pared to a tra­di­tion­al exchange where it usu­al­ly takes two days to set­tle a trade, BSTX will offer same-day and next-day set­tle­ments. It will also use a pri­vate blockchain to offer a mar­ket feed that will allow mem­bers to view their own trades, as well as those of oth­ers, anonymously.

What it won’t offer mem­bers is the abil­i­ty to trade dig­i­tal tokens, which means it’s not a new place to buy and sell cryp­tocur­ren­cies and oth­er vir­tu­al assets. Jay Fras­er, head of BSTX, told Reuters the exchange plans to poten­tial­ly allow equi­ty token trad­ing at a lat­er date. BSTX had planned to focus exclu­sive­ly on tok­enized secu­ri­ties, but the SEC reject­ed those plans in an ear­li­er filing.

Still, Fras­er said the goal is to cre­ate an exchange that ulti­mate­ly looks more like Coin­base than some­thing like NASDAQ or NYSE. Until then, BSTX will oper­ate more like a tra­di­tion­al exchange when it opens before the sec­ond half.

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