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Decentralized Crypto Exchange Everbloom Seeking To Become Licensed Broker Dealer

Decentralized crypto exchange Everbloom has submitted an application seeking a license to become a licensed broker-dealer. The start-up exchange has also recently registered with the U.S. Securities and Exchange Commission (SEC) and has submitted the application for a licensed broker-dealer to the Financial Industry Regulatory Authority (FINRA).

The Everbloom exchange is one of the numerous so-called decentralized exchanges (DEXs) for cryptocurrencies that have cropped up recently. It has applied to become a licensed broker-dealer in order to attract institutional investors. In case its application is approved by FINRA, the exchange would be allowed to profit from services pertaining to trading securities.

Crypto exchange Everbloom Chief Operating Officer, Scott Pirrello said that getting a broker-dealer license is a tedious, long and expensive business. However, he added that they believe it is a necessary one, as it will help in adding long-term value to the company and they will be able to position themselves well against their competitors.

Most DEXs these days allow traders to retain the custody of their assets and utilize open source platforms that don’t compulsorily require know-your-customer (KYC) identity checks. Everbloom exchange, on the other hand, takes just the opposite approach. It aggregates order books from DEX protocol EtherDelta and soon it will be doing so from 0x too. Everbloom also doesn’t approve trades or deal with custody.

The DEX concept has of late started drawing interest from the institutional investors. However, these button-down investors may not want to handle custody themselves and large institutional investors are anyways required to use a qualified custodian, as mentioned in the CoinDesk report.

As crypto exchange Everbloom seeks to become a licensed broker-dealer, the BitGo crypto exchange has decided to buy Bitcoin custodian, Kingdom Trust. This acquisition corroborates the fact stated above pertaining to button-down investors. BitGo CEO Mike Belshe said in an interview, that what they have noticed in the last year and a half is this massive shift where new investors prefer and much rather see custodial options, as stated in the Bloomberg report.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]
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Jesmine Rahman holds 15+ years of professional writing experience of working with reputed Indian dailies like the Times of India and the Indian Express. She also holds a rich experience of working as a Senior Technical Content Specialist with a reputed IT company. for 10 years. She writes crypto news on OWLT Market.

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