BSTX Receives SEC Approval for Blockchain-Powered Securities Exchange

Blockchain technology will now be powering a fully automated national exchange for the first time.

AccessTimeIconJan 28, 2022 at 6:23 a.m. UTC
Updated May 11, 2023 at 5:23 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about