After More Than A Year, Harbor Square Investments Receives Broker-Dealer License From FINRA


Harbor square Investments was officially designated a broker/dealer by FINRA. This approval comes after a meticulous process that took months to arrive at a conclusion. They tend to deploy deep experience, leading technology and intensive market intelligence to function the primary line of oversight for the brokerage trade – all at no cost to taxpayers.

Operating out of the United States, Harbor is a tokenization platform that was founded in 2017. In the time since their launch, the company has managed to create a specialized token standard meant to serve the industry, known as ‘R-Tokens’, in addition to expanding the functionality of their platform.

The move breaks an extended standoff between aspiring crypto broker-dealers and therefore the U.S. regulators who approve them. FINRA has sat for months on roughly forty broker-dealer applications from firms dealing in crypto assets, denying them a broker-dealer license that might let these corporations provide securities in the U.S.

Some suppose FINRA, a self-regulatory organization, was holding off on these approvals at the SEC's request, because the agency has however to offer clear guidance.

Broker-dealers within the U.S. are lawfully registered and controlled entities that can purchase or sell securities, each on their behalf, also for clients. Some corporations wish to use digital assets as securities, permitting them to plug to institutional investors who cannot hold or directly purchase these assets.

“It took the regulators a long time to get a handle on the space and understand it and its implications. This was very new for the SEC and FINRA, and they wanted to do it right,” says Harbor CEO Josh Stein.

They are facing stiff competition from Dinosaur Financial Group. In early 2019, they made a foray into digital securities, through a partnership with tZero.

Additionally, one of the most well-known names in blockchain, Coinbase became a broker/dealer through the acquisition of Keystone Capital, in mid-2018. This approach was unique, as this allowed for Coinbase to gain the abilities of a broker/dealer in a short amount of time.

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