
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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