SEC approves the creation of a new stock exchange, the USA's 17th, that will incorporate/utilize "Blockchain" | Reuters

Has anyone seen this yet and have more details? The US SEC just approved the plan for the country's 17th stock exchange, with a twist.

~~~ "The new exchange, named BSTX, aims to launch in the second quarter, said Jay Fraser, a director. It will initially trade securities, such as stocks or exchange-traded funds, first listed on its exchange, but those securities would be tradable on rival courses." ...

"BSTX ultimately aims to expand trading to all U.S. stocks and *potentially tokenized securities, Fraser said. Stock tokens are digital versions of equities pegged to the underlying share, usually traded in fractional units."*" ...

"The exchange plans to expand its use of blockchain, the technology that underpins cryptocurrencies such as bitcoin, over time to support products like tokenized securities, Fraser said." ...

"BSTX was originally going to be called the Boston Security Token Exchange and planned to exclusively trade tokenized securities, but the SEC rejected that plan in December of 2020."

~~~ So the caveat is this: as of now this stock exchange will launch using Blockchain for in-house purposes until they can reapply and get approval from the SEC for the tokenised securities. The approval was saught for but denied once already.

Reuters was one of the only few non-paywall sources that I could find on this from this recent activity. I was finding other sources from ~2019 about this topic, but they don't seem to mention any entities in this article. It mentions this happening "Last Thursday (Jan 27, 2022).."

It sounds like the stock exchange wants to operate the Blockchain privately and use it to issue the stock shares. Synthetic assets pegged to the traditional share, meaning they would have reserves of the underlying securities they are synthetically selling.

I know these types of platforms kind of exist already, but they're not regulated in the US and the residents of technically aren't allowed to use...This would be the first exchange using Blockchain for whatever purposes.

Itll be interesting IF they can get approval for tokenised shares, then I will really start to follow the details.

(Reuters)

(Edit: formatting on mobile)