Watchdog Capital, a broker-dealer regulated by the Financial Industry Regulatory Authority (FINRA) has announced a decentralized platform built on the blockchain for digital and traditional securities.
The firm, which has been approved for securities underwriting, REITs, crowdfunding, investment banking, Reg A+ offerings, and various OTC, believes in a future where blockchains address the inefficiencies in global capital markets.
As per the announcement, the decentralized platform enables firms and individuals that encountered a strict compliance screening process to ally with Watchdog and access its technical and operational capabilities, as well as their regulatory supervision.
As registered and regulated with regulators in the United States, the firm intends to build a platform that is compliant with securities regulations, decentralized, and distributed technology.
Hence, based on the decentralized broker-dealer platform, independently-owned startups and existing advisors and companies can be able to affiliate with Watchdog, under their supervisory umbrella, thereby removing the need to start a broker-dealer platform.
According to Carl Litsch, the Director and Chief Compliance Officer of Watchdog:
If startups, existing firms or individuals with a spotless compliance record have the need for a broker-dealer or would like to explore affiliation with our decentralized broker-dealer network, we’d love to talk. Our focus is to build a regulatory compliant firm that is at the cutting edge of developments in the cryptocurrency and digital assets space.
The idea entails that the affiliated firms will leverage on Watchdog Capital’s back office, technology, and compliance support, while also operating in a decentralized and distributed supervisory model. Meanwhile, the process involves an extensive approval, licensing and oversight requirements, per the report.
However, the firm’s services are only available to selected high net worth investors, and it is also based on FZand affiliations at the moment.