U.S. markets close in 4 hours 24 minutes
  • S&P 500

    -87.46 (-2.20%)
  • Dow 30

    -447.60 (-1.40%)
  • Nasdaq

    -390.62 (-3.39%)
  • Russell 2000

    -56.54 (-3.15%)
  • Crude Oil

    -0.07 (-0.06%)
  • Gold

    +19.30 (+1.04%)
  • Silver

    +0.38 (+1.76%)

    +0.0045 (+0.42%)
  • 10-Yr Bond

    -0.1280 (-4.48%)

    -0.0072 (-0.57%)

    -1.3790 (-1.08%)

    -1,350.65 (-4.44%)
  • CMC Crypto 200

    -7.97 (-1.22%)
  • FTSE 100

    -31.19 (-0.42%)
  • Nikkei 225

    -253.38 (-0.94%)
WEF 2022:

Yahoo Finance is in Davos! Get the latest updates here

BSTX Receives SEC Approval for Blockchain-Powered Securities Exchange

·2 min read

BSTX, a joint venture between tZero and Boston Options Exchange (BOX) Digital Markets, has received the green light from the U.S. Securities and Exchange Commission (SEC) to operate a blockchain-based securities exchange.

  • BSTX is aiming for immediate or accelerated settlement (T+0 or T+1) thanks to the transactions taking place on the blockchain. It will also provide market data recorded on the blockchain in a process similar to an Oracle. This will be done via a blockchain run by BSTX, the company said.

  • The exchange will be open to both retail and institutional investors.

  • BOX has been trying to get SEC approval for some sort of exchange since 2020. The first iteration of the application was for a Security Token Offering (STO) platform.

  • In 2020, the SEC declined BOX's application to record end-of-day securities ownership balances and other trading data to the Ethereum blockchain.

  • “The SEC has taken an important step forward today in its approval of BSTX as a national securities exchange,” BSTX CEO Lisa Fall said in a statement. “We are eager to continue to work closely with the SEC to launch a fully regulated new exchange and to help provide capital markets with more modern tools for issuers and investors.”

  • BSTX said it is working to eventually support regulated crypto markets alongside its equity offerings.

  • In a release, the SEC said the approval is conditional on BSTX joining relevant national market system plans. These are structures set up for the dissemination of real-time market information. The SEC will also require BSTX to be part of an intermarket surveillance group, which is an industry working group used to coordinate regulatory compliance.

  • “Today’s approval is only the start for BSTX. We are encouraged and energized by the outreach to date from both traditional and non-traditional finance participants. Utilizing future rule filings, we plan to respond with a series of further innovations that will benefit both the issuer and trading communities,” added Fall.