Yesterday, U.S-based cryptocurrency exchange Bittrex announced a partnership with Rialto Trading, a U.S.-registered Alternative Trading System (ATS), to jointly provide a digital securities trading platform. Through this partnership, Rialto Trading’s ATS operations will expand beyond fixed income products into blockchain-based securities.
According to the official press release published by Bittrex, both companies plan to combine their specializations that will leverage Bittrex’s knowledge in blockchain technology, cybersecurity, and cryptocurrency trading with Rialto’s licensed broker-dealer ATS and securities industry experience. Together they aim to offer a regulated trading platform for digital securities. Shari Noonan, CEO of Rialto Trading stated:
We are excited to share Rialto’s expertise in building networks and trading solutions in the regulated securities industry to develop this new venture in partnership with Bittrex. By working together, we’ll be able to expand our current client offerings to not only include digital securities, but also provide them access to a globally advanced and reliable trading platform.
ATS for Blockchain-Based Digital Securities
The extended ATS platform will be available for institutional investors, corporations, U.S.-registered broker-dealers and accredited investors that have either an annual income of at least $200,000 or a net worth of over $1,000,000. The ATS will support USD trading for the digital securities and has already captured the interest of some of Rialto’s institutional clients. Shari Noonan told Reuters:
“We have seen interest from most of our large institutional clients that are trading our fixed income products.”
The new partnership will not only see Rialto Trading expand beyond fixed income products into cryptocurrency securities, it will also position the company to provide additional services to the digital asset securities ecosystem, including advisory services, placement, trading and custody.
While an approval from the regulatory entities is still pending, talks with the agencies are already taking place from both companies and institutional investors, accredited investors, corporations and U.S.-registered broker-dealers can contact Rialto Trading to pre-register an account. Issuers can also contact the company to start the listing process.
Bittrex Forearming to ICO/Tokens Regulations
Many see the move by Bittrex and Rialto Trading as an important step forward in establishing trust in the cryptocurrency market for traditional investors. The new trading platform will allow investors to trade crypto assets in a safe and compliant manner.
Last year, Bittrex replied to a SEC Digital Asset Investigative Report stating their adherence to SEC and CFTC related laws and regulation as well as their compliance efforts through partnerships with the likes Perkins Coie and Delta Strategy Group. Bittrex also noted that they serve on the Executive Committee of the Chamber of Digital Commerce and regularly meet with regulators and legislators to provide them with information regarding the cryptocurrency space.
In the aftermath of the recent hype surrounding ICOs and the regulatory scrutiny that followed, Bittrex seems to have remained focused on self-regulation, as well as providing tools that facilitate compliant trading activities.