UK digital asset exchange Archax has received FINRA approval for its US subsidiary Archax Markets, completing its registration as a broker dealer with the SEC. Beyond selling private placements to US investors, positions Archax Markets as a route for European tokenized securities to reach US institutions.
The approval comes 17 months after Archax announced plans to buy Globacap’s US broker dealer and alternative trading system (ATS). That deal fell through when fund administrator Apex Group acquired Globacap last November, leaving Archax to take the slower route of a new application. It expects to start US operations this quarter, which gives it until the end of the month.
SEC Rule 15a-6 lets a non US broker sell securities to US institutions without registering with the SEC, provided a registered US broker dealer takes responsibility for the transactions and record keeping. Hence the reference to chaperoning. Archax’s UK and Spanish entities can now market tokenized private placements to US institutions through Archax Markets, and so can other non US brokers. With FCA, CNMV and SEC oversight, Archax is offering a bridge for European tokenization firms wanting US distribution, and for US investors wanting European reach. Regarding tokenization competition, Securitize, the largest US tokenization firm, is an EU DLT Pilot Regime participant, but has kept a lower profile in Europe.
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