OpenFinance Opens a Security-Token Alternative Trading System (ATS)
The CEO of OpenFinance, Juan Hernandez, made an announcement on Tuesday (August 28th) that their platform has now launched a new system for security tokens. The protocol is called an alternative trading system (ATS), and it will now allow accredited investors to both purchase and trade digital assets within the platform.
There was a soft launch for this platform a few weeks ago, which let both buyers and sellers register. This gave them the time to complete the necessary requirements for their money-laundering and know-your-customer procedures. Today’s announcement from Hernandez means that the platform is fully available for qualified users.
The whole timeline that OpenFinance created was developed around the availability of their partners. Basically, the security tokens had to be ready from the partnered platforms for the company to launch their own project, or there would be nothing to transact in the first place. Even though Blockchain Capital was their first partner, the first token to be available is SPiCE VC (SPX).
Right now, OpenFinance is working on launching Science, Protos, MintHealth, Corl, Bloxroute, and Property Coin to the exchange in the future. To qualify for trading on the ATS, the toke has to fall under a Regulation D, S, A+ or CF exemption. Regarding the security tokens, Hernandez noted, “[Our partners] are all security tokens that have the necessary smart contract infrastructure in place to be able to trade on our platform.”
To ensure the launch approval of the OpenFinance ATS, the company has continued to maintain a line of communication between themselves and regulators in the area. Regarding this approval, Hernandez said, “It's such a new space that the conversations, communications that we've had with regulators more often than not turn into education, where we are highlighting and detailing how our technology and the smart contracts standards allow for adherence to the rules and compliance.”
Many retail investors are unable to received accreditation, but that won’t prohibit them from transacting on the platform. Instead, they can still trade some assets, but there will be a 12-month holding period.
Along with OpenFinance, there are many other startups that are working on opening their own ATS platforms. In fact, some of the companies that are working to launch systems to trade security tokens include Bittrex, Coinbase, Templum, and Overstock. These efforts are made specifically to function within the United States.