Overstock opens exchange for legal …
Overstock opens exchange for legal trading of cryptocurrency tokens
Blockchain startup TØ, a subsidiary of Overstock, is launching the first-of-its-kind Alternative Trading System (ATS), which will provide a platform for exchanging cryptographic tokens qualified in the US as securities. Writes about this CoinDesk.
A joint venture between Overstock, RenGen (a fintech company that will take on the role of a market maker) and Argon Group (an investment bank specializing in ICOs) ATS will be regulated by the US Securities and Exchange Commission (SEC) and the Financial Institutions Regulatory Agency (FINRA).
ATS will provide a legal and regulated alternative to major stock exchanges such as the New York Stock Exchange and the Nasdaq.
Thus, the platform can be an important step for the development of cryptocurrency token trading. Until this point, there were no legal platforms that would allow US investors to trade tokens that are securities..
Overstock CEO Patrick Byrne said: “I think this is a historic event. We are opening a new type of capital market “.
Argon’s General Counsel and Interim CEO Emma Channing Says ATS Trading Volume Could Reach $ 2 Billion In 12 Months.
In addition, creating liquidity for a new type of securities will reduce commissions on the new platform by 80-90% compared to traditional stock exchanges, Byrne says, and adds that, thanks to the blockchain, settlements will occur in real time, and not with a three-day delay. how it happens on traditional stock exchanges now.
Byrne believes lower fees and faster processing will create a fairer market with higher liquidity and better pricing mechanisms..
At the moment, startups conducting ICOs have to face a dilemma: they either try to issue tokens that do not fall under the SEC definition as securities, or they issue tokens that meet this definition and refuse liquidity in light of the existing restrictions.
According to Channing, they will no longer have to make this choice..
“We believe this is exactly what the SEC asked for in its report on The DAO,” she said..
Channing believes that the new platform will allow the issuance of tokens that will be investment products.
Byrne is of the same opinion: “There is now only one exchange in the world that has received SEC approval, and it belongs to us.”.
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