A broker-dealer registered with the Securities and Exchange Commission (SEC) is preparing to launch Gladius: a regulatory-compliant security token platform.
- New Hampshire-based Watchdog Capital said Thursday that issuers would be able to use Gladius to offer security tokens.
- In a statement, Watchdog said Gladius could provide companies with more access to capital as well as better opportunities for investors.
- Gladius, which has been built to be compatible with existing U.S. securities laws, is currently in beta mode.
- Bruce Fenton, CEO of Watchdog’s parent Chainstone Labs, told CoinDesk Gladius plans to host the first offering in the next three months.
- As Watchdog is a registered broker-dealer, Fenton said Gladius can be used for SEC-exempted offerings, including crowdfunds.
- Watchdog has to approve each offering; certain Reg A offerings may also need approval from the SEC.
- The broker-dealer does not have the appropriate licenses to offer secondary trading or custodial services on Gladius.
- The platform is blockchain-agnostic and can also be used to issue paper equity – investors can either pay in fiat or cryptocurrencies.
- Fenton said his company believes it’s the only broker-dealer launching a U.S. security token platform at this time.
- He added that security tokens may well open up a new regulated investment avenue for companies in the decentralized finance space.
See also: Mauritius Releases Guidance for Regulated Security Token Offerings