Bittrex is partnering with a registered broker-dealer, Rialto Trading, to create a new trading venue for blockchain-based digital assets. The firm announced on Thursday, Aug 23, that it is talking to the regulators about the same, but they have not given any details of when the trading venue will be available.
A Venue for Rialto Clients?
Rialto is running a registered trading platform for fixed-income products in the US. As soon as it received approval from the regulators, it will also be offering virtual tokens that are considered registered securities on the platform. Both the companies are currently having “detailed conversations” with the regulators about the possibility of such an offering. However, they have not set a timeline for the launch of this platform.
Chief executive of Rialto Trading Shari Noonan noted:
“We have seen interest from most of our large institutional clients that are trading our fixed income products.”
The venue that the two companies are planning to launch will be open to corporations, institutional investors, US-registered broker-dealers, as well as accredited investors. The investors must meet the requirements of an annual income of at least USD $200,000 set by US securities regulations. Alternatively, they could have a net worth of over $1 million.
Firms Team Up for Crypto Investment
Rialto and Bittrex are not the first firms teaming up to attract more crypto businesses by investing in the development of traditional trading infrastructure. Crypto firms are understanding the fact that institutional investors or high net worth individuals will enter the space only when there are sufficient checks and balances in place. The recent hike in Bitcoin prices when the markets expected the Securities and Exchange Commission’s (SEC’s) decision on Bitcoin ETF products shows that investors are interested in this space, but they could be looking for more familiar financial products.
Regulators, on the other hand, realize that some cryptocurrencies could come within the purview of existing securities regulations. The SEC is also suggesting that many new tokens issued in initial coin offerings could follow these securities regulations while being traded on alternative trading systems. Some exchanges like Coinbase are already gearing up to either seek licenses from the federal authorities or acquire companies that already have such licenses.