Joint Venture to Launch World's First Regulated Exchange for Security Tokens - The Industry Spread

Ricardo Esteves

Ricardo Esteves has seen business and economics through many lenses. He joined the Financial Services Industry in 2009, and has been a financial journalist since 2011. He holds a degree in Business Administration and has experience producing real-time news, from both buy-side and sell-side, as well as for retail traders, brokers and service providers. Esteves' work has appeared in a variety of online publications including FX Street and FinanceFeeds.


Joint Venture to Launch World’s First Regulated Exchange for Security Tokens

June 23, 2018
BOX Digital MarketstZERO, a fintech company that aims to integrate blockchain technology into traditional capital market functions, has entered into a joint venture with BOX Digital Markets to create the world’s first regulated exchange for trading security tokens, which are defined as “securities” under U.S. law.
The joint venture has yet to seek approval from the U.S. Securities and Exchange Commission (SEC) prior to beginning operations. Upon obtaining SEC approval, the joint venture will operate as a facility of BOX Options Exchange, an existing registered U.S. securities exchange.
Lisa Fall, CEO of BOX Digital
Lisa Fall, CEO of BOX Digital

tZERO and BOX Digital will be sharing economic ownership and board representation equally. The former will power the technology required to create and operate the joint venture, as well as manage the ongoing technology implementation, administration, maintenance and support.

BOX Digital will provide executive leadership and regulatory expertise. The appointed Chief Executive Officer of the joint venture is Lisa Fall, CEO of BOX Digital.
Saum Noursalehi, Chief Executive Officer of tZERO
Saum Noursalehi, Chief Executive Officer of tZERO

“We will work closely with the SEC to create a framework for the safe and efficient trading of security tokens and our joint venture with tZERO marks a significant step that brings us ever closer to creating the industry’s first regulated exchange for security tokens,” said Fall. “With BOX’s experience in building and operating a sophisticated equity options marketplace and tZERO’s industry leading blockchain technology, we have brought together our organizations’ combined expertise to create a more efficient capital market that will benefit traders and issuers.”

Saum Noursalehi, Chief Executive Officer of tZERO, commented: 
“There is no doubt that security tokens are the future of capital markets. tZERO and BOX Digital will create the first fully regulated security token exchange and fundamentally improve the way capital is raised and traded across different asset classes. Teaming up with Box Digital will allow us to complement our alternative trading system, already under development, with a separate, regulated platform, expanding the reach of our technology to security token issuers of all types, from micro-cap issuers to SEC reporting companies.”
Patrick Byrne, CEO of and Executive Chairman on tZERO
Patrick Byrne, CEO of and Executive Chairman on tZERO

Patrick Byrne, CEO of and Executive Chairman on tZERO, said: 

“I believe the greater investing community does not yet understand the extraordinary changes blockchain is going to bring to global capital markets. It is a great honor to have been selected by BOX as their partner for this historic endeavor.”

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