Delaware Board of Trade (DBOT), Fundamental Interactions, and Y2X announced today the formation of an end-to-end service to digitize and trade multiple asset classes including securities tokens, debt instruments, real estate, art, and intellectual property rights. Known as Velocity Ledger, the system utilizes leading-edge blockchain-based technology already approved for trading by the SEC and FINRA. Initial products at launch include U.S. securities tokens and real estate.
“We are creating the operating system of the new digital marketplace. We are excited to provide regulated marketplaces for assets that until today have been illiquid and untraceable,” Y2X co-founder Todd Morley said. “This will bring the benefits of blockchain technology and cryptocurrency to all investors in an efficient, effective way, with enormous benefits for capital formation as well as for asset management.”
Digital currencies are emerging as a new global asset class, and Y2X helps companies raise capital for new enterprises and individuals to invest in high-growth companies more efficiently and effectively. Fundamental Interactions has established blockchain technologies, including smart contracting features embedded in securities tokens, which will be at the center of this service offering. Through a well established network of broker-dealers, market makers, market data providers, and deep relationships with the traditional banking system and cryptocurrency network, the alliance will provide end-to-end processes, including creation of tokens eligible for issuance and trading on multiple marketplaces.
In addition to the DBOT equities venue, which is already in operation as an SEC-regulated ATS, the parties have agreed to establish and fund Velocity Ledger, a marketplace for real estate, fixed income, OTC cryptocurrency, and other asset classes. Y2X has a pipeline of companies preparing to launch securities token offerings, which will be listed and traded on the system.
“Fundamental Interactions’ tested technology is already in use at multiple cryptocurrency and traditional exchanges. Our new standards for tokenization and blockchain-based settlements will ensure these innovative new products can be traded and settled globally,” CEO Shawn Sloves said.
“DBOT was established to create markets for innovative new products like unlisted securities,” added DBOT chairman John Wallace. “With our connectivity to over 200 broker-dealers, as well as market makers and data providers, we are confident we can bring liquidity to this rapidly-growing space in a well-regulated marketplace.”