BSTX (Boston Security Token Exchange) get approval from the SEC to operate as a blockchain-based security platform. It is good to see that now blockchain tech will be coming to the traditional markets. Do note that the approval only involves securities (not crypto or any other blockchain application). This solidifies that blockchain is here to stay and could slowly become a part of our tech world.
About BSTX
The Boston Security Token Exchange has been launched by BOX Digital and tZERO together. They were initially trying to get approval for publicly-traded registered security tokens platforms and landed here. The SEC approved the use of blockchain when they saw that it could help in faster settlements in the normal markets. This is why this is purely for the use of blockchain as a technology and doesn’t involve getting digital assets or something else in the picture.
In fact, with the approval the BSTX has also been denied by the SEC from offering any form of crypto-services. They can only use blockchain to get market data feed with BSTX’s blockchain tech. The use of this tech will also speed settlement times from T+2 days to T+1 or even T+0 business days. And will enhance the usability and speed of the entire process.
BSTX’s CEO Lisa Fall said that their ultimate goal is to enable developers and exchange observers to use the innovation and modern market structure. It is already being used in crypto, and blockchain technology can help generate ideas for improving the securities listing and trading experience for everyone.
The requirements placed by the SEC
Along with the approval, the SEC has also made sure that BSTX stays on the right path by putting in some requirements for the exchange to follow. They need to join the relevant national market system plan for equities trading, have a regulatory service agreement with FINRA, an Intermarket surveillance group membership, and a governance structure. All this is supposed to keep the exchange safe, and its users won’t face any issues.
What are your thoughts as BSTX gets approval from the SEC? And do you think that the new settlement times are a game-changer for the markets? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: JPMorgan reduced its Bitcoin fair price to $38k amidst market volatility.
