The United States-based FinTech company tZERO and BOX Digital Markets LLC announced on Tuesday that they have entered into a joint venture, aiming to become the world’s first regulated exchange for trading security tokens.
Security tokens are defined as “securities” under U.S. law. If tZero and BOX Digital’s venture takes shape, investors will have a Securities and Exchange Commission-regulated platform on which to trade crypto assets.
According to the announcement, tZERO will power the technology required to create and operate the joint venture. In addition, tZERO will manage the ongoing technology implementation, administration, maintenance and support. BOX Digital will provide executive leadership and regulatory expertise. Upon obtaining SEC approval, the joint venture will operate as a facility of BOX Options Exchange, an existing registered U.S. securities exchange.
“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 BOX Digital CEO Lisa 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.”
BOX Digital is a wholly-owned subsidiary of BOX Holdings Group LLC, which owns and operates BOX Market, an equity options marketplace and a facility of BOX Options Exchange LLC. BOX Digital’s partner, t0.com, Inc. (“tZERO“) is a majority-owned subsidiary of Overstock.com, focusing on the development and commercialization of financial technology based on cryptographically-secured, decentralized ledgers – more commonly known as blockchain technologies.