The Securities and Exchange Commission (SEC) has approved a new blockchain-based US exchange

People who trade stocks on an exchange know that buying and selling can happen quickly, but the full settlement of a trade can take up to two days. The SEC, on the other hand, has certified the Boston Security Token Exchange (BSTX), a new US exchange that employs blockchain technology to speed up transaction settlements.

For those unaware, blockchain technology is the technology that underpins bitcoin. It essentially functions as a ledger in the sense that once information is placed into the blockchain, everyone on the blockchain will have a copy of that information, making it impossible to tamper with it, change the data, and so on since everyone knows the original.

In order to validate ownership and the chain of custody of digital assets, NFTs rely on this technology. The BSTX, which uses blockchain technology, intends to assist traders to settle their deals within the same day or within a day’s time.

In spite of the fact that it uses blockchain, the BSTX will only enable dealers to trade equities and ETFs. The Securities and Exchange Commission (SEC) first rejected a scheme to utilize it to trade tokenized securities. However, if they can get it authorized, the BSTX plans to extend to encompass tokenized securities in the future, but for now, the SEC notes that, despite the shorter settlement times, the BSTX will still follow the “substantively equivalent” standards that other more conventional exchanges follow.