Popular cryptocurrency exchange Bittrex is teaming up with Rialto Trading, a next-generation Alternative Trading System (ATS) to offer a new digital securities trading platform.
According to a statement on August 23, Rialto operates a regulated ATS for trading fixed income products, and pending approval from regulators, will expand its ATS operations to include blockchain-based (digital) securities. Both companies are conducting discussions with regulators regarding the launch of this expanded platform.
Rialto Trading is teaming up with #Bittrex to expand Rialto’s Alternative Trading System (ATS) to include blockchain-based (digital) securities, pending approval from regulators. Details: https://t.co/JBoSCvJ6hM pic.twitter.com/gGX9D0t0LO
— Bittrex (@BittrexExchange) 23 August 2018
The new venture will combine Rialto’s licensed broker-dealer ATS, tools and securities industry experience with Bittrex’s expertise in blockchain technology, cybersecurity and cryptocurrency trading to create a comprehensive securities offering. The ATS will support US dollar (fiat) trading for digital securities. In addition, Rialto will provide services to the entire digital asset securities ecosystem, including issuance advisory services, placement, trading, and custody.
“We are excited to share Rialto’s expertise in building networks and trading solutions in the regulated securities industry to develop this new venture in partnership with Bittrex,” said Rialto Trading CEO Shari Noonan. “By working together, we’ll be able to expand our current client offerings to not only include digital securities, but also provide them access to a globally advanced and reliable trading platform.”
Bittrex CEO Bill Shihara says that it takes a unique combination of advanced technology and financial expertise to build and launch an efficient, reliable and secure platform for trading digital securities, and sees Rialto and its CEO Shari Noonan as an “ideal partner.”
“We’re merging Bittrex’s technology, cybersecurity and blockchain expertise with Rialto’s deep knowledge of the securities industry. And, when you add that foundation with Rialto’s extensive background in financial services, including Shari’s experience at Goldman Sachs and Deutsche Bank, this new venture is well-positioned to further advance blockchain’s adoption by offering a comprehensive solution at the right time,” Bill Shihara said.
New partnership sees Bittrex positioning itself similarly to the largest U.S. crypto exchange Coinbase, which earlier this year revealed its plans to become a federally regulated broker-dealer. This includes acquiring a broker-dealer license, an alternative trading system license and a registered investment advisor license.
If those licenses are granted, Coinbase plans to seek approval from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to offer blockchain-based securities. As part of the plan, the San Francisco-based company is moving to acquire several regulated companies – Keystone Capital Corp., Venovate Marketplace and Digital Wealth LLC.
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