FINRA regulated Broker-Dealer Watchdog Capital believes in the future of blockchain-powered digital securities. Watchdog in a release said distributed ledger technology will soon “transform global capital markets.”
The firm says that rather than fight the rising digital tied it plans to build a platform that is both compliant with regulations while also embracing new technology. Watchdog believes that compliance with securities regulations can be compatible with decentralized and distributed technology.
Watchdog is approved for securities underwriting, investment banking, crowdfunding (Reg CF, Reg A+, Reg D 506c) and more.
Bruce Fenton, CEO of Chainstone Labs, owner of Watchdog Capital, states:
“Many of the ideals from the Bitcoin industry can benefit the securities industry. Cypherpunks write code to protect consumers and their privacy and to give them more control over their digital lives. This isn’t at odds with the pro-free market ideals of the U.S. stock markets, in fact it can be very complimentary. Watchdog believes in cypherpunk values, privacy, personal property rights, Austrian economics, security and Bitcoin as global money. The firm will work to push the limits of this technology as the digital securities ecosystem evolves.”
Fenton adds that he is particularly interested in decentralized exchanges, atomic swaps, the lightning network and privacy tools for digital assets.
“This is an ever-evolving area and the team believes we can merge the best of decentralized technology and its core values in a regulated environment,” Fenton says.
Watchdog “aims to be at the forefront as these technologies develop.”
Fenton reports that they have been building something for quite some time that incorporates industry best practices with digital securities..
Their decentralized broker-dealer platform is said to allow independently owned startups and existing independent advisors and companies to affiliate with Watchdog under their supervisory umbrella, avoiding the need to start their own broker-dealer.
Currently, Watchdog’s services are only open to select high net worth investors and through partnerships and affiliations. As the industry matures, the company plans to expand its offerings.
Carl Litsch, Director and Chief Compliance Officer of Watchdog, says if a firm has a spotless compliance record and is looking to affiliate with their “decentralized broker-dealer network” they would love to talk.
“In addition to Bitcoin, Watchdog is working to support SEC compliant, regulated securities projects built on Ethereum and other platforms. This will evolve as we gain confidence in the ability of each toolset to comply with securities regulations and we see offerings that meet our rigorous screening process.”
Watchdog said it does not plan to custody digital assets and intends to focus on a methodical and regulatory focused rollout.