Perpetuals.com Seeks U.S. Tokenized Stock Trading Via SEC ‘Innovation Exemption’
Summary
- Perpetuals.com said it is seeking to enter the U.S. tokenized stock trading market by using the SEC’s innovation exemption program.
- The company said it will operate permissioned AMM liquidity pools on Cronos X Public, its Ethereum-compatible layer-2 blockchain, and limit the service to users who meet certain requirements.
- Perpetuals.com said it could begin tokenized stock trading as early as mid-November after notifying the SEC of its plan and waiting about 30 days, making it the second case after OKXICE to pursue the innovation exemption.
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Nasdaq-listed Perpetuals.com is seeking to enter the U.S. market for tokenized stock trading.
CoinDesk reported on Oct. 14 that the company plans to pursue a tokenized securities trading business using the U.S. Securities and Exchange Commission’s “innovation exemption.” The program grants qualifying tokenized stock trading platforms relief from related regulations for five years.
Perpetuals.com plans to operate permissioned automated market maker, or AMM, liquidity pools on Cronos X Public, its proprietary Ethereum-compatible layer-2 blockchain. The model uses smart contracts and liquidity pools instead of a traditional order book that matches buy and sell orders. The service will be limited to users who meet certain requirements.
The launch schedule has not been finalized. Perpetuals.com said it could begin tokenized stock trading as early as mid-November after publicly notifying the SEC of its plan and waiting about 30 days.
CoinDesk said Perpetuals.com would be the second company to seek use of the innovation exemption, following OKXICE, a joint venture between global cryptocurrency exchange OKX and Intercontinental Exchange, the parent of the New York Stock Exchange. OKXICE recently announced plans to tokenize about 60 U.S. stocks and offer 24-hour trading year-round.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul