The Delaware Board of Trade has received an investment from Hyperion, a Canadian company hoping to break through issues related to the use of digital currency in stock transactions.
Michael Zavet, CEO of Hyperion was appointed the president of the organization and a member of the board.
No financial details were released.
Hyperion is gaining a stake in trading system that has Securities and Exchange Commission approval for the use of digital currency.
Hyperion is a business technology investment and advisory group with expertise in securities tokens. The organization is founded by Zavet and Shidan Gouran.
In a release, Hyperion noted that the SEC “indicated that “to get the protections offered by the federal securities laws and SEC oversight when trading digital assets that are securities, investors should use a platform or entity registered with the SEC.”
“We are truly excited about the road ahead, and we know that our partnership centered on tokenized securities, broad market reach, and regulatory compliance is a powerhouse in the making,” says Zavet. Security tokens will be a big part of the future of finance and DBOT ATS and Hyperion are paving the way.
Earlier, the Board of Trade announced that Chinese company Seven Stars made an investment in the exchange. The company has since announced plans to build a center in Connecticut.
The Delaware Board of Trade was championed by former New Castle County Executive Tom Gordon, who engineered a loan for the company through proceeds from a county park fund. Collateral for the loan is software used by the Board of Trade.
The loan has been cited as an example of poor past fiscal practices by Gordon’s succesor Matt Meyer.
The board of trade was touted as a way for smaller companies to have access to capital. Delaware’s effort to champion blockchain technology that allows virtual currencies to move around without being altered was later seen as a “silver bullet” that might spur growth.
However, problems with bitcoin later relabeled as cryptocurrency have kept regulators wary, despite the SEC giving the Board of Trade the legal go-ahead.
