New US Stock Exchange Will Use Blockchain to Track Trading Activity

Deepak Gupta
Deepak Gupta January 29, 2022
Updated 2022/01/29 at 11:09 PM

This week, America’s first blockchain-based stock exchange gained regulatory approval from the Securities and Exchange. On a the SEC uploaded to its website on Thursday night, it said the (BSTX) could use nascent technology to deliver faster trade deals. Compared to a traditional exchange where it normally takes two days to settle a trade, BSTX will offer same-day and next-day settlements. It will also use a private blockchain to offer a market feed that will allow members to view their own trades, as well as those of others, anonymously.

What it won’t offer members is the option to trade digital tokens, meaning it’s not a new place to buy and sell cryptocurrencies and other virtual assets. Jay Fraser, director of BSTX, said the exchange plans to potentially allow stock token trading at a later date. BSTX planned to focus exclusively on tokenized securities, but the SEC rejected those plans in an earlier filing. Still, Fraser said the goal is to create an exchange that eventually looks more like Coinbase than something like the NASDAQ or NYSE. Until then, BSTX will function more like a traditional exchange when it opens before the second half of the year.

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