Harbor, a United States-based securities tokenization startup, announced Thursday that it had received a transfer agent license from the Securities and Exchange Commission (SEC).
In an Oct.31 interview with The Block, Harbor CEO Joshua Stein revealed that their blockchain-based platform has arguably become the first in the country to hold both a broker-dealer license and the transfer agent license.
While the broker-dealer license permitted Harbor to onboard investors to their platform for trading security tokens, the latest license lets the firm to maintain financial records for token offerings that they conduct, as well as payout dividends when it is due.
Stein noted that Harbor could, thus, facilitate the full life cycle for security tokens, telling The Block:
Think of the entire life cycle of this [...] The broker-dealer is mostly involved in gaining the investors into the investment. The transfer agent maintains the records while they are in and pays out dividends, and the transfer agent controls when they pay out.
The CEO further explained that with the new transfer agent license in the bag, Harbor can now look to offer its services to blockchain companies in the U.S who wish to conduct token offerings in line with the SEC’s Regulation A+ (Reg A+) requirement.
Given the stern regulatory environment for startups who wish to conduct cryptocurrency-backed token offerings in the United States, the Reg A+ alternative funding for which Blockstack and YouNow have received approval from the SEC in the last couple of months is becoming slightly famous.
Meanwhile, we reported earlier in the day that Europe is now home to more security token-related blockchain companies when compared to the U.S, where regulations are arguably still unclear.