A New York-based fixed income broker-dealer is teaming up with cryptocurrency exchange Bittrex to develop a digital securities trading platform.
Rialto Trading currently operates a regulated trading platform, or alternative trading system (ATS), for fixed income products, and upon regulatory approval, is hoping to expand its operations to include blockchain-based securities.
In a statement, Bittrex and Rialto Trading said that both companies have had detailed conversations with regulators about plans to launch the platform.
“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,” said Rialto Trading CEO, Shari Noonan. “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.”
The project will see Rialto’s licensed broker-dealer ATS and tools combined with Bittrex’s expertise in blockchain technology, cryptocurrency trading and cybersecurity for a complete digital asset platform.
“We’re merging Bittrex’s technology, cybersecurity and blockchain expertise with Rialto’s deep knowledge of the securities industry,” Bittrex CEO, Bill Shihara, commented.
“And, when you add that foundation with Rialto’s extensive background in financial services, including [Noonan’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.”
Bittrex recently teamed up other major cryptocurrency exchange players to establish a self-regulatory organisation aimed at policing digital asset markets.
Gemini, bitFlyer, Bitstamp and Bittrex founded the Virtual Commodity Association (VCA) Working Group, with the support of former executive deputy superintendent at the New York Department of Financial Services Maria Filipakis, who has been appointed interim executive director of the group.
The VCA’s inaugural meeting is scheduled to take place next month, with topics of discussion including guidelines for best practices and rules-based marketplaces to promote fairness and transparency in cryptocurrency markets.