SEC Registered Broker-Dealer Is Launching a Security Token-Friendly Platform

A broker-dealer registered with the Securities and Exchange Commission (SEC) is preparing to launch Gladius, a regulatory-compliant platform that can be used for security tokens.

• Georgia-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 such a platform in the U.S. 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

EDIT (July 27, 09:25): A few details have been edited for added clarity; a previous version of this article said Watchdog Capital was based in New Hampshire.