Boston Options Exchange (BOX) is seeking permission to launch a security token platform in an attempt to calm regulatory concerns about the role of Ethereum in storing ownership records.

The company has submitted an amended proposal with the United States Securities and Exchange Commission (SEC) at the end of last month, published Friday in the Federal Register. That opens up the proposal to feedback from interested audience members.

BOX wants the SEC to sign off on its new subsidiary, the Boston Security Token Exchange (BSTX), a tokenized equity trading platform which will also store ownership information on the Ethereum blockchain.

The amended proposal, with notable tweaks from the version submitted by BOX in December, increases from two to three the number of market makers required for an initial listing, and brings listing standards closer to those set by the New York Stock Exchange (NYSE).

Ethereum Won’t Substitute Conventional Ownership Records

The exchange also made efforts to emphasize once again that BSTX records held on Ethereum would only be “ancillary records that would not create or convey any ownership of security tokens or shareholder equity.” In other words, Ethereum will not be used as a substitute for conventional ownership records in the near future.

BSTX is a joint venture announced back in 2018 by BOX and tZero, the firm that hosted one of the first proper security token offerings (STOs). In May 2019, BOX submitted its first version of a’ rulebook for the first regulated security token exchange,’ published for public consultation by the SEC in October of the same year.

BOX, judging by the summing-up section, seeks to alleviate any possible SEC concerns so that it can take the “important first step” to integrate blockchain into the U.S. financial system. Success could mean other entities, including traditional financial institutions, could also start experimenting with the technology, the filing suggests.

Cryptolydian reported earlier that, Online retailer Overstock’s security token network, tZERO, published today a letter summarizing its market performance over the past year and its 2020 plans, which include additional funding.

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