The US-based cryptocurrency exchange Bittrex has joined hands with Rialto Trading, a provider of trading tools, to offer a new digital securities trading platform. Currently, Rialto operates a regulated alternative trading system (ATS) for trading fixed income products. Post pending approval from regulators, Rialto will expand its ATS operations to include blockchain-based (digital) securities.
The expanded platform 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. Shari Noonan, CEO of Rialto Trading said:
"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. 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."
Bill Shihara, CEO of Bittrex added:
"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 [...]. We're merging Bittrex's technology, cybersecurity and blockchain expertise with Rialto's deep knowledge of the securities industry. [...] this new venture is well-positioned to further advance blockchain's adoption by offering a comprehensive solution at the right time."
Earlier in June, another US-based popular cryptocurrency exchange Coinbase revealed that it is in the process of acquiring a broker-dealer license, an alternative trading system license and a registered investment advisor license. If approved, Coinbase will be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This is being planned through Coinbase's acquisitions of Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC.