The operator of the Boston Stock Exchange has announced a partnership with Overstock subsidiary tZero to launch the world’s first regulated security token exchange.
The joint venture, unveiled on Tuesday, will see tZero and Boston Stock Exchange company BOX Digital Markets develop a regulated venue that facilitates the trading of blockchain tokens that are classified as securities under federal regulations.
The platform, which is as yet unnamed, could provide companies with the ability to hold initial coin offerings (ICOs) with less risk of running afoul of federal securities laws. It could also pave the way for public firms to tokenize their company stock and issue shares on a blockchain.
Lisa Fall, CEO of BOX Digital and president of BOX Options Exchange, will head the operations of the new platform.
“tZERO’s track record and accomplishments in this innovative area, coupled with BOX’s expertise in operating a highly efficient and transparent equity options marketplace, made partnering together an easy decision and we look forward to building a world-class platform for listing and trading security tokens.”
Sam Noursalehi, who recently assumed the chief executive post at tZero after Overstock’s Patrick Byrne stepped back from that role, said that the initiative is a “significant milestone” for the integration of blockchain markets into traditional finance.
“Our partnership with BOX Digital Markets is a significant milestone that will create the first SEC-regulated exchange designed to efficiently trade crypto securities. Lisa Fall’s leadership, reputation and deep experience in the regulated securities exchange industry will be a major asset in achieving this objective.”
“Together, we will continue to work with the SEC as we develop a first-of-its-kind platform that will integrate blockchain capital markets into the current U.S. National Market System,” he added.
BOX Digital will operate the security token exchange, while tZero will contribute cash to the venture and license its proprietary blockchain technology to the platform.
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