The BSTX exchange won approval from U.S. regulators for a plan to use blockchain technology to fuel key aspects stock trading.
The approval, announced on the SEC’s website late Thursday, is being hailed by some as a milestone in a push for regulated crypto markets. However, the SEC said in its filing that the go-ahead doesn’t apply to the trading of digital tokens — meaning that the exchange won’t be able to start offering cryptocurrencies and other virtual assets.
According to the SEC, BSTX’s go-ahead is limited to more traditional stock exchange services, including:
- Clearance and settlement procedures that could be as short as the same day, versus the standard time of two business days
- Market data that would be available on BSTX Market Data Blockchain
–By Ben Bain (Bloomberg Mercury)