The Boston Security Token Exchange (BSTX) – a freshly formed center of the BOX exchange – reportedly obtained regulatory greenlight from the US SEC to function as a blockchain securities exchange.

Specifically, BSTX was reportedly established as a collaborative effort from BOX and Overstock’s blockchain division tZERO, with an initial target of securing greenlight to introduce publicly-traded registered security tokens.

Nonetheless, the SEC greenlight for functioning as a national securities exchange reportedly offered BSTX the freedom to utilize blockchain for accelerated settlements in traditional markets.

“The Commission notes that the [BSTX] Exchange’s current proposal does not involve the trading of digital tokens and such a proposal, or any other additional use of blockchain technology.” The SEC reportedly claimed. 

While the SEC has reportedly rejected BSTX’s submission for providing crypto-centric offerings in the past, this most recent go-ahead will make it possible for the center to utilize a proprietary market data feed, BSTX Market Data Blockchain.

Furthermore, BSTX will additionally utilize blockchain to assist investors in experiencing transactions with an accelerated speed, on the same day (“T+0”) or the next day (“T+1”), rather than the normal two business-day (“T+2”) settlement cycle currently existing in traditional markets.

Together with the regulatory greenlight based on BSTX’s proposals for regulation adjustment (SR-BOX-2021-06), the SEC reportedly also placed four conditions for BOX in line with BSTX’s operations. 

The requirement reportedly includes taking part in every associated national market system plan which has connections with equities trading, as well as ensuring Regulatory Services Agreement with FINRA, Intermarket Surveillance Group membership for the BSTX facility and an applicable governance structure.