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OpenFinance Launches ATS for Securities Tokens

Security token trading platform, OpenFinance has launched Alternative Trading System (ATS) for the security tokens, according to information shared by the local news-paper as it was reported on August 29.

In Canada and U.S, an Alternative Trading System (ATS) is a non-exchange trading venue that matches sellers and buyers to find counter parties so that they can make transactions. They are usually regulated as broker-dealers instead of as exchanges.

Juan Hernandez, CEO at the U.S.-based OpenFinance, made confirmation to the local newspaper through an email that the company has created the trading system, noting that the official press release will appear later on the company Medium account.

In the month of July, cryptocurrency exchange Huobi entered into a partnership with OpenFinance. In the news-paper it was stated that the partnership was made for a more safe, secure, regulated security token market and growing confidence in the U.S. market. And In the case of Huobi strategic investment, Hernandez said that, “We all believe that security tokens are the future of finance and future of world, and Huobi investment is our trading platform is reflective of the rising interest around the globe in this emerging financial ecosystem.”

In the U.S., a security token is any token which is found to be a security by employing the Howey Test, that is the token offers an opportunity to contribute money and to get share in the profits of an enterprise managed and partly owned by respondents. Additionally, the scheme involves an investment of money in a common enterprise with profits to come solely from the efforts of others.

Last week, U.S based registered company and famous broker-dealer Rialto trading announced that the company has been working with the regulators only to expand its trading operations to include blockchain-based securities.

On 16th July, leading U.S. cryptocurrency exchange and wallet service Coinbase announced that it had received approval from the U.S. Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) are to list digital coins considered to be securities.