FINRA Awards Harbor Broker-Dealer License

cryptowarrior88 (59)in #cryptocurrency • 5 years ago

The subsidiary of tokenized securities platform Harbor has recently been awarded a broker-dealer license from the Financial Industry Regulatory Authority (FINRA).

This development came after the Securities and Exchange Commission (SEC) and FINRA took its time in approving Harbor Square Investment’s application which they say exposes their investors undue risk.

Delays in Harbor’s license approval stem from several crypto dilemmas, private key access, record-keeping, and asset custodianship, the same barriers other cryptocurrency-related businesses encounter in other regulators.

Once a firm has been granted a broker-dealer license it can buy and sell securities on their own and on their client’s behalf, they can also offer digital assets as securities to institutional investors so long as it is compliant to SEC and FINRA requirements.

Securing the broker-license enables Harbor to become a one-stop-shop for digital asset issuers and they plan to provide the technology platform to manage fundraising, investor management tokenization technology as well as the liquidy pool.