Boston Security Token Exchange, part-owned by Overstock’s tZERO has filed an application seeking approval by Securities and Exchange Commission (SEC) to launch a market for publicly traded registered security<a href="https://www.cryptoknowmics.com/crypto/icos-vs-stos/"> tokens.</a>

Furthermore, the SEC proposed a <a href="https://www.sec.gov/rules/sro/box/2019/34-87287.pdf">change of rule</a> on October 11. However, BOX Digital Markets which partly owns the startup has asked the commission to “adopt rules to govern the trading of equity securities on the Exchange” which “would operate a fully automated, price/time priority execution system for the trading of ‘security tokens.” The SEC’s 129-page rule change proposal released recently gives an inside look on how the proposed exchange might in future.

In addition, the exchange would back up the ownership records on the Ethereum public Blockchain. It will keep updating the logbook at the end of each trading day. This adds to the market participants’ official ownership data.

Moreover, the wallet managers’ in charge of already approved wallet addresses; will have to foot daily gas bills to send transactions to the Ethereum Blockchain. However, the exchange doubts the fees will add up too much. Additionally, the firm has hinted at having own listing standards. Only the tokens meeting them would be listed on the exchange.
<h2>Closed Public Blockchain</h2>
However, as per the application with SEC, only white-listed Ethereum addresses will be able to access the service. That means only BSTX and the so called authorized wallet managers can access the services.

Additionally, the listed tokens have to be compliant with ERC-20 standards, additional security features; and three smart contracts. The smart contracts track ownership, white-listed addresses and compliance with set regulations.

In conclusion, one question addresses who is conducting trades and whether they are authorized to. In traditional markets, a participant ID (MPID) is assigned by the Financial Industry Regulatory Authority (FINRA). However, in the case of  BSTX  a white-listed wallet address is used as the identifier.

t-Zero-Backed Startup Seeks Approval to Start Security Token Market

Boston Security Token Exchange, part-owned by Overstock’s tZERO has filed an application seeking approval by Securities and Exchange Commission (SEC).. %

My first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.

t-Zero-Backed Startup Seeks Approval to Start Security Token Market

Top Picks