BlockEx, a platform provider for blockchain-based digital assets, is teaming up with FINRA-registered broker-dealer GB Capital Markets Inc to allow trading of security tokens issued in ICOs in compliance with US regulations.
The joint venture will be built in a collaboration that draws on the distinct strengths of each company. Specifically, the partnership will combine BlockEx’s blockchain-based trading platform with GBCM’s ability to provide liquidity, market making and SEC-compliant environment to provide European Initial Coin Offerings (ICOs ) with access to US accredited investors.
BlockEx’s wants to stay on the right side of the law, only offering their token to accredited investors, and working with a regulated broker dealer. BlockEx offers a platform that “manages the entire lifecycle of blockchain based digital assets, including origination, issuance, exchange, settlement and redemption,” according to its website.
The move comes just as the US Securities and Exchange Commission is seeking legitimate platforms serving as trading venues for digital assets.
This topic has received much attention since the SEC made clear that any digital token with an income stream is a security, and furthermore that any entity wants to become an ATS needs to register with the SEC as a broker-dealer and become a member of a self-regulating organization, such as the FINRA.
Commenting on the partnership, Adam Leonard, CEO at BlockEx said: “We are delighted that the European market for ICOs and other digital asset tokens will now be open to US purchasers in a way that is compliant with US law. We expect the service to be available within 90 days.”
Scott Rothman, President at GBCM, added: “Both GB Capital Markets and BlockEx believe that the market for digital assets should be well regulated, and we’re happy to partner to bring this to the US.”