Cryptocurrency startup Uphold has announced yesterday, June 27, that it is seeking to become a US-approved broker-dealer platform.
The said startup was emboldened after acquiring another registered firm named JNK Securities, which has existed for 25 years, and which already has operating rights. According to Uphold, they are eyeing to offer security tokens, as well as fractional equities and other similar exchange services under the approval and supervision of the US Securities and Exchange Commission (SEC) and FINRA, as part of its securities platform.
Ben Sherwin, Uphold’s chief counsel, revealed the startup’s future plans, which is to become an Alternative Trading System (ATS), with the SEC.
Sherwin also said:
“You file with FINRA to become a broker-dealer and that broker-dealer status allows us to engage in activities that we wouldn’t be able to without that license. It also aligns with our mission of transparency and trust because we’re submitting to the regulation that is appropriate and responsive to what the regulators are saying.”
For now, Uphold and JNK Securities will operate separately and will be considered two unique companies until the merger gets approved by SEC. Uphold also said that the former employees of JNK will be welcome to remain in the company regardless, inadvertently becoming part of those who’d help the company in its expansion.