SEC approves new US exchange using blockchain

The Securities and Exchange Commission (SEC) is giving the green light to a US-based blockchain-based exchange that will significantly reduce transaction processing time.

If you have ever traded stocks on an exchange platform, you know that buy and sell orders are executed very quickly, and transactions can take up to several days to complete in the meantime. That being said, the SEC — the US federal regulator and financial market watchdog — just gave the green light to a new US-based exchange platform dubbed the Boston Security Token Exchange (BSTX), which uses blockchain technology precisely to speed up the completion of all these exchanges.

SEC Gives Green Light to US Blockchain-Based Exchange

For those who don’t know, blockchain is the technology behind cryptocurrencies. Basically, it allows information to be stored, and once information is entered into a block chain, everyone on that block chain gets a copy of that information. This means that it is not possible to change the data since everyone knows the original version.

It is for this reason that the technology is used for NFT, it allows you to check who owns a digital good and who were the previous owners. Using blockchain technology, BSTX wants traders to be able to complete their trades in a day or less.

This will significantly reduce the exchange processing time.

And while the platform uses blockchain, BSTX only allows trading in securities such as stocks or exchange-traded funds (ETFs). Initially, there was a desire to allow the exchange of tokenized securities, but the functionality was rejected by the SEC. At the same time, BSTX intends to one day offer this option, if, of course, it receives the consent of the sacred SEC. In any case, the latter currently explains that despite the shorter processing time, BSTX will have to adhere to rules “substantially similar” to those that apply to traditional exchange platforms.