SharesPost has successfully traded security tokens on a blockchain using a regulated alternative trading system, an industry first.
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In an industry first, SharesPost has completed a secondary trade of security tokens on its alternative trading system (ATS), with the transaction being registered on the blockchain.
The registered broker-dealer in the U.S revealed that on the 9th January 2019 it had successfully carried out a secondary trade of its BCAP tokens, issued by Blockchain Capital. These tokens represent shares in the Blockchain Capital III Digital Liquid Venture Fund and run on top of the Ethereum blockchain.
In a comment to Coindesk, John Wu, Digital Asset Group CEO told the publication that the trade was a "small test" in order to make sure that the system worked properly. Mr Wu went on to explain that the exercise marked "the first trade of digital securities by an Alternative Trading System and broker-dealer in which the ATS custodied the digital securities." SharesPost had previously offered support for over-the-counter trading (OTC) as well as custody of digital assets, with future plans to launch order books further down the line.
SharesPost Founder and CEO Greg Brogger said via a press release on the company's website:
“This is an important milestone for the digital securities ecosystem. Now companies can efficiently raise capital and provide liquidity globally by leveraging blockchain technology in a way that complies with securities laws. We are very excited to be connecting the more than 50,000 institutional and individual accredited investors using the SharesPost marketplace with companies and funds like Blockchain Capital that are leading the way. We believe that over time digital securities will join preferred and common stock as the mainstays of the private capital market.”
Blockchain Capital Co-founder and Managing Partner, Bart Stephens added that the company was "unique in its support of private companies and funds because they offer a comprehensive platform on which our investors can interact to enable liquidity." Stephens also added that the company was hopeful that their platform will be a resource to investors and would "allow us to deepen our relationship with them over time.”
This security token news marks a step forward in the right direction, especially in the U.S considering the Securities and Exchange Commission's (SEC) tight guidelines.
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