For the first time ever a regulated ATS (Alternative Trading System) platform has been used for carrying out a secondary trade of security tokens on a blockchain. It is a significant milestone in the development process of the market.
A registered broker-dealer, Alternate Trading System, and registered investment advisor – SharesPost – has said that they have carried out their first secondary transaction with BCAP tokens, which was issued by Blockchain Capital. These BCAP tokens run on Ethereum blockchain’s top, which thereby represents shares in the Blockchain Capital III Digital Liquid Venture Fund.
SharesPost didn’t disclose the trade size performed on the regulated ATS because of confidentiality issues. However, John Wu (CEO of SharesPost Digital Asset Group) said that it’s a proof-of-concept transaction. A division of SharesPost, Digital Asset Group, reportedly oversaw the test. Wu went on to say that “This was a small trade, it’s like a pilot program, we’re ‘running the water through the pipes’ to make sure” that the transaction is taking place.
He also said:
“To our knowledge, this was the first trade of digital securities by an Alternative Trading System and broker-dealer in which the ATS custodied the digital securities. This clears the path for companies to do compliant STO’s in the U.S. and provide their investors with secondary liquidity.”
SharesPost had previously offered digital assets’ custody. They also provided OTC (over-the-counter) trading of digital securities. Reports say the company intends of launching real-time trading order books.
They have claimed their new system will help institutions as well as other accredited investors shifting to digital assets with sufficient liquidity.
Greg Brogger, CEO and Founder of SharesPost, said in a statement that in the private capital markets digital securities will ultimately play a prominent role. While speaking about the significance of BCAP trade, he said:
“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.”
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