Securitize, a company that specializes in issuing token shares, will buy out the DTM broker to become an alternative system for secondary trading of digital assets.
Securitize management has already signed a purchase agreement with Distributed Technology Markets (DTM), a broker registered with the U.S. Securities and Exchange Commission (SEC). In addition, the DTM has been approved by the Financial Institutions Regulatory Agency (FINRA).
As part of the agreement, Securitize will also be managed by a branch of DTM Velocity Markets. It provides payment services, as well as performs currency conversion and money transfers, having a license to carry out this activity in several states.
The terms of the purchase were not disclosed. Securitize’s management is awaiting regulatory approval for the transaction. General Director of the company Carlos Domingo (Carlos Domingo) said that he intends to create a platform for secondary trading in non-emissive securities, so the acquisition of DTM will be the best way to implement this idea.
Domingo explained that he is not interested in creating his own platform. He managed to talk to the owners of more than 40 companies working with tokenized securities, and it turned out that many projects were forced to “collapse” due to the lack of clear regulation of the cryptocurrency industry in the country.
In addition, in April, the token-share trading platform Openfinance warned that it could delist all tokens and suspend trading if the token issuers do not cover some of the costs. Therefore, Domingo believes that the chances of creating its own platform for secondary trading in digital securities and its trouble-free existence are small.
Earlier, the startup Securitize launched the Instant Access service, with which retail investors can trade tokens-shares in the Ethereum network.