US-based Riot Blockchain has filed (Mar 14) with the Securities and Exchange Commission (SEC) to allow its subsidiary RiotX Holdings to launch a crypto exchange offering banking, trading, and wallet services.

According to the SEC filing, exchange services will be handled by RiotX Holdings because Riot Blockchain’s main focus will remain on crypto mining. SynapseFi will collaborate with RiotX to create an API, or software intermediary, to link users with US-approved banks for fiat and crypto transactions within the US.

Location and identity tracking will be employed to guard against fraud and abuse of services. This includes helping to prevent users from erroneously utilizing RiotX’s services in US states that do not legally recognize crypto exchanges. RiotX will be working with exchange solutions company Shift Markets to deliver its trading services.

Eventually, RiotX targets to have a presence in all US states by the end of this year, save for Hawaii and Wyoming. It claims to already have received approval in five states.

Riot Blockchain used to be Bioptix – a biotechnology firm that specialized in making diagnostic equipment. In late 2017, it decided to shift its business focus to crypto instead, and changed its name. Bloomberg noted back then that Bioptix stock nearly doubled in the days that led up to the company’s official announcement about its intended transformation.

The suddenness of the company’s change and its spike in share price resulted in SEC sending it a subpoena. Last year, it cancelled an existing contract with Canadian crypto exchange Coinsquare during SEC’s investigation before deciding to partner Shift Markets. In the last two years, the company also changed its board and CEO.