Overstock (NASDAQ:OSTK) subsidiary tZERO is partnering with BOX Digital Markets LLC to launch the industry’s “first regulated security token exchange”, according to a statement released on Wednesday. tZero revealed the prototype for the planned exchange back in April.
The two FinTech companies are seeking the approval of the US Securities and Exchange Commission (SEC). The news comes after months of speculation over SEC crackdowns as they reassert their position that all initial coin offerings (ICO’s) are securities.
In a statement, CEO of tZERO Saum Noursalehi said: “Our partnership with BOX Digital Markets is a significant milestone that will create the first SEC-regulated exchange designed to efficiently trade crypto securities.”
The exchange will list and publicly trade security tokens for companies that either issue them or want to convert existing stock to them, said the statement.
tZERO, which is focused on applying blockchain technology to commercial services to increase speed, efficiency and reduce costs, said it will provide the blockchain-based technology to operate the market, as well as financial support. BOX Digital creates markets for digital assets in a regulated environment. The company’s focus will be to help obtain regulatory approval for the security token market. This approval will be sought once the official documents have been executed, and the current CEO of BOX Digital, Lisa Fall, will become the CEO of the exchange, according to a statement.
BOX Digital creates markets for digital assets in a regulated environment. The company’s focus will be to help obtain regulatory approval for the security token market. This approval will be sought once the official documents have been executed, and the current CEO of BOX Digital, Lisa Fall, will become the CEO of the exchange, according to a statement.
Security tokens take their value from an external asset, such as gold, and are subject to security trading regulations. The SEC, which is responsible for enforcing these regulations in the US has previously stated that all ICOs appear to be securities.
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