Bittrex teams up with Rialto to trade crypto securities

Bittrex, the US-based crypto asset exchange, announced on Thursday it was teaming up with Rialto Trading, which operates a fully-licenced and regulated alternative trading system (ATS) to offer a digital securities platform.

Crypto exchange Bittrex teams up with broker-dealer Rialto

The two companies said they were having “detailed conversations” with regulators to launch an expanded platform that combines Rialto’s broker-dealer ATS with Bittrex’s expertise in blockchain technology, cryptocurrency trading and cybersecurity.

US dollar trading

Bittrex said in a statement that the ATS would support US dollar trading for digital securities and other services including issuance advisory services, placement, trading and custody.

The partnership adds to the continuing efforts by cyrptocurrency exchanges to legitimise their operations by teaming up with fully-regulated broker dealers as regulators increase their scrutiny of the crypt asset sector.

US federal law dictates that a company which trades securities must register with the Securities and Exchange Commission, unless it qualifies as an ATS or can prove any other legal exemption.

Regulatory approval

Among those to have already made such a move, Coinbase announced in June it was to acquire broker-dealer Keystone Capital. Indeed, the SEC this week granted Coinbase regulatory approval to list security tokens, thanks to its acquisition.

“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 Shari Noonan, chief executive of Rialto Trading.

“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.”

Bill Shihara, chief executive of Bittrex, added: “It takes a unique combination of advanced technology and financial expertise to build and launch an efficient, reliable and secure platform for trading digital securities, and we found the ideal partner in Rialto.