The major operators behind the Boston Stock Exchange have recently announced a partnership with the Overstock subsidiary tZero to launch the worlds first regulated security token exchange.
The partnership was announced on Tuesday between tZero and Boston Stock Exchange Company, BOX Digital Markets. This partnership will allow for the creation of a regulated company that will enable the investors to purchase tokens designated as Tokens by the American SEC.
The platform would provide companies with the potential to host ICO public crowdfunding without the risk of running against the grain of federal securities laws. It can also prove an essential system for other companies interested in developing an ICO. BOX Digital Markets CEO, Lisa Fall, will be heading up the development of the exchange.
“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 with an easy decision and we look forward to building a world-class platform for listing and trading security tokens.”
tZero's newly appointed CEO, Saum Noursalehi, has referred to the proposed collaboration as presenting a ‘Significant milestone'. Allowing cryptocurrencies to enter the traditional financial world, while also allowing traditional companies to implement a cryptocurrency of their own.
“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.”
BOX Digital will be responsible for direct operations of the Security Token Exchange, while tZero will contribute cash and its technology to the venture.