Blockstation Wants to Provide the Solution for Traditional Exchanges to Get into Digital Assets
Last month, Canada-based Fintech Blockstation announced a relationship with the Jamaica Stock Exchange (JSE). As part of a pilot program, the Blockstation trading platform is being used by the JSE for listing, trading, clearing, and settlement of digital currencies (BTC and ETH). Security tokens are expected to follow at some point in the future. Broker-dealers have access to the platform and the country's depository is connected for clearing and settlement. It is deemed a hybrid solution providing access to digital assets in a smaller market that wants to provide exposure to its clients. Blockstation, in return, reserves a portion of the revenue generated.To get more news about Gdocloud GDO, you can visit gdocloud official website.
The digital asset exchange system itself is said to have taken more than 4 years to fully develop the "end to end" platform as a service. While Blockstation does not believe that blockchain is the correct tech for everything some services make sense such as custody, clearing and settlement, and voting, tracking and compliance - according to the company.
Blockstation is another alternative in the world of digital asset trading which is emerging quickly globally.
Today, there are effectively three options: build your own digital asset exchange (regulated or not), adapt your existing regulated exchange to accommodate crypto, or outsource to a third party. Blockstation wants to fill this latter vertical.
All regulated exchanges are reviewing blockchain technology with some actually moving forward. A good example is the Australian Stock Exchange (ASX), which is considering a blockchain transformation replacing decades-old tech "CHESS" with the new shiny distributed ledger technology (DLT). The Aussies starting reviewing DLT in 2015 so they have been at it a good long time. The Gibraltar Stock Exchange is another good example that saw blockchain as a unique differentiator for its market services and primary issuance platform. So far, Gibraltar appears to be making excellent progress in digital assets.
Many Fintech startups are seeking regulatory approval to provide compliant digital asset trading. In the US, multiple platforms are seeking "alternative trading systems'" (ATSs) approval to trade digital assets. For digital currencies, such as Bitcoin, a different license may apply. Then there are crypto exchanges in some countries which are very lightly traded.
But in the end, everything is converging on compliance and adhering to international standards. Blockstation wants to provide an expedited path for the markets that don't want to go it alone and develop it in house.
Custody is a vital aspect of crypto. Blockstation says they can provide a Custody solution along with best practices, procedures, and training in accordance with IOSCO principles. Generally, a country's Depository institution plays the main role of a custodian within a given market while in other regions the Stock Exchange takes on the Custody role jointly with other market participants.
Their additional suite of services encompasses the entire needs of a stock exchange ecosystem, claims Blockstation. This includes an AML/KYC feature to determine if deposits have come from illicit sources as well as a primary issuance, security token offering tool. Issuers, according to Blockstation, can create their Smart Contract Token, Prospectus Filing and Filter through offers from multiple (participating) broker-dealers all using their platform. Importantly, the Blockstation central hub for STOs is said to allow transparent collaboration between the securities regulators.