BSTX to establish blockchain-based stock exchange after SEC approval

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Boston Security Token Exchange (BSTX) has finally received approval to establish a blockchain-based stock exchange, months after filing the application with the US Securities and Exchange Commission.

“BSTX would serve as the listing market for eligible companies and issuers of exchange-traded products,” the SEC said in a notice approving the new venture. The exchange would provide market data transmitted via blockchain and potentially faster settlement to investors. Both retail and institutional investors can leverage the stock exchange

BSTX is a joint venture between Boston Options Exchange (BOX) Digital Markets LLC and tZERO Group, which develops services for security token exchanges and crypto apps. The venture first applied for the stock exchange in 2020 but was rejected after SEC expressed concerns over potentially inaccurate information being published on the blockchain.

The stock exchange once again filed with the SEC in May 2021, after which the regulator solicited public comments and kept the filing under deliberation.

“The SEC has taken an important step forward today in its approval of BSTX as a national securities exchange,” said BSTX CEO Lisa Fall 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.

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