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Bittrex, one of the largest cryptocurrencies exchange platforms, has announced a partnership with Alternative Trading System (ATS) solution provider Rialto Trading to create a decentralized exchange platform for blockchain-based securities trading. The Rialto-Bittrex deal is pending approval from the relevant regulatory bodies.
In a recent press release published by Bittrex, Rialto will expand to include blockchain-based securities trading as part of their services. As of now, Rialto technology is licensed to provide a platform for the trading of fixed-income products.
This acquisition could not come at a better time. Security Token Offerings (STO) are soon to phase out 2017’s influx of Initial Coin Offerings (ICO). Security tokens on the blockchain differ mainly because of strict adherence to regulations, making these offerings much more attractive to institutional investors. Without an ATS, companies wanting to trade licensed securities are doing so illegally. Currently, multiple exchanges are applying for their ATS license and having to wait in the line of government bureaucracy. tZero, a widely referenced tokenized securities exchange has already raised $134 million and is still in the queue.
Experienced players in their respective niches
Rialto Trading, named for the famous Venetian trading quarter, specializes in providing the technological platform for ATS, which act as a looser form of trading exchange. Conventional exchanges play a more significant role in defining and facilitating trades on their platform as well as market making.
Bittrex, a Seattle based exchange and one of the top trading platforms in the United States conducted an average of about 25 to 50 million dollars of trading volume in July. With over 200 trading pairs, a sleek trading view, dependable digital wallets and fast execution, Bittrex has quickly made a name for themselves among cryptocurrency enthusiasts.
Feedback from leadership
The announcement enthused Bill Shihara, CEO of Bittrex: “We’re merging Bittrex’s technology, cybersecurity, and blockchain expertise with Rialto’s deep knowledge of the securities industry. And, when you add that foundation with Rialto’s extensive background in financial services, including Shari’s experience at Goldman Sachs and Deutsche Bank, this new venture is well-positioned to further advance blockchain’s adoption by offering a comprehensive solution at the right time.”
Shari Noonan, CEO of Rialto Trading had this to say: “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 with access to a globally advanced and reliable trading platform.”
The technical abilities and current regulatory filings of Rialto along with Bittrex’s dedicated userbase and experience trading blockchain based assets give Bittrex quite the upper hand. The trend of exchanges applying for ATS capabilities is evidence that the two worlds of finance are merging.