SEC Approves First National Blockchain-powered Boston Security Token Exchange

The Boston Security Token Exchange has been cleared to begin offering pricing and market data built on blockchain technology.


US Securities and Exchange Commission building exterior. Washington DC. Credit: Shutterstock


key takeaways

  • The SEC has given the nod for BSTX to begin providing customers a market and price feed based on blockchain technology
  • The move marks the first time the SEC has granted approval for a national blockchain-enabled securities exchange

A joint venture between the Boston Options Exchange (BOX) and crypto tokenization firm tZero has been granted regulatory approval to operate a bourse utilizing blockchain tech for its settlements and market data.

The US Securities and Exchange Commission (SEC) gave the nod to the Boston Security Token Exchange (BSTX) for its Market Data Blockchain product following a lengthy rule review process, according to an SEC notice on Wednesday.

BSTX has been cleared to offer “several proprietary market data products,” similar to those provided by other national securities exchanges in addition to a historical market data product powered by the blockchain.

The move marks the first time the SEC has granted approval for a national blockchain-enabled securities exchange. BSTX will serve as the listing market for eligible companies and issuers of exchange-traded products.

Specifically, BSTX’s blockchain product will seek to settle transactions within the same day (T+0) or a day after (T+2) while providing “proprietary and transparent blockchain data feeds,” according to a statement on Thursday.

BSTX will also offer “improved market quality” for early-stage companies. Companies looking to unlock further liquidity will be able to tap into solutions designed to improve trading while democratizing access to other companies and assets, the statement reads.

Conditionally, BOX is required to join all relevant national market system plans related to BSTX equities trading. These include the Consolidated Tape Association Plan, the Consolidated Quotation Plan, and the Nasdaq UTP Plan. BOX must also join the National Market System Plan and the National Market System Plan, per the notice.

“This is a watershed event in the digital evolution of the securities markets and the trading experience,” said BSTX Board Member and tZERO Interim CEO, Alan Konevsky.

Indeed, the march towards its approval from the regulator stretches back more than two years following BOX’s amended filing in Jan. 2020 to use an omnibus entry based on the Ethereum blockchain. Shortly after, the SEC declined the application.

“With BOX Digital’s experience in building and operating a sophisticated securities exchange and tZERO’s industry-leading blockchain technology innovation, we have brought together our organizations’ combined expertise to drive innovation,” said Konevsky.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg


Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.


In a bid to woo institutional crypto traders, Binance wants help from a bank


Musk’s hesitation to launch his own crypto made sense in previous cycles. But there’s no shame left around here — he should just go for it


Commissioner Peirce would have done things differently if she could when it comes to her agency’s crypto enforcement actions


MicroStrategy discloses the purchase of 16,000 bitcoin throughout November


Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion


Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks