The Financial Industry Regulatory Authority (FINRA) has granted a broker-dealer license to Harbor Square Investments, a subsidiary of tokenized securities platform Harbor, as revealed today by company representatives.
Apart from Harbor, there are about 40 other crypto firms eager to get licensed by FINRA. Thus, this move allegedly marks the end of a year-long standoff between them and U.S. regulators.
“It took the regulators a long time to get a handle on the space and understand it and its implications,” Harbor CEO Josh Stein explained. “This was very new for the SEC and FINRA, and they wanted to do it right.”
Being licensed, Harbor is now entitled to buy and sell digital assets both on its own behalf and on behalf of its clients, thus delivering them to institutional investors.
The Harbor team sees this development as an important step towards bringing institutional investors to the crypto space.
“People, processes, and tech. We’ve concentrated on institutional-grade people, institutional-grade processes, and institutional-grade tech from the beginning,” – Stein commented.
Thanks to the freshly-acquired license, Harbor plans to “provide the technology platform to manage the fundraising, the technology to manage investors, the technology to tokenize and enable liquidity,”.
Harbor CEO believes that this important precedent may let other crypto firms catch up and get officially licensed as well.
“It’s a big deal for the whole industry,” concludes Stein.