Crypto Platform Uphold To Acquire New York-Based Broker-Dealer JNK Securitiesbr>
Cryptocurrency platform Uphold will be acquiring New York-based broker-dealer JNK Securities to expand its service offering.
Uphold, formerly Bitreserve, is a cloud-based financial services platform enabling users to convert deposits to their account via bank account, credit card, and cryptocurrencies into reserve-backed currencies and commodities. It allows anyone with a device to send, receive, and exchange money and commodities. Uphold claims to have facilitated over $2 billion USD in transactions since its inception in 2015.
Founded in 1993, JNK Securities is an agency-only execution broker/dealer with direct market access to the listed & over the counter (OTC) markets. It provides executions to a range of institutions, including mutual funds, institutional asset managers, and hedge funds. The company also offers thought leadership events and exclusive third party industry focused research to their institutional investor clients.
Uphold and JNK have filed an application with the US Financial Industry Regulatory Authority (FINRA) for the approval of the change of ownership and business expansion. Once approved, Uphold will file a Form ATS with the US Securities and Exchange Commission (SEC) to begin operating an alternative trading system (ATS).
Uphold said that if it receives the SEC’s approval, the extension of the broker-dealer registration will enable the company to set up a new securities division. The company indicated that its new securities division will offer trading of initial coin offering (ICO) tokens and fractional equities, and provide other exchange services, under the oversight of the SEC and FINRA. In addition, the acquisition will also offer JNK clients access to all of Uphold’s crypto to fiat trading pairs and assets.
“We have kept a close eye on statements from global regulators regarding virtual currencies and tokens and believe that many crypto assets (particularly ICO tokens) may be treated as securities in some cases,” said Adrian Steckel, CEO of Uphold. “Broker-dealer and ATS coverage is key to protecting our customers and to building a preeminent financial services ecosystem. We are proud to be a compliant financial services company, working with regulators to ensure we provide the most trusted and transparent access to digital financial services worldwide.”
“In its 25-year history, JNK has continued to evolve with the financial markets,” said Scott Kaplan, CEO of JNK Securities Corp. “We are excited to become part of Uphold’s vision for the future of digital capital formation, while continuing to offer our acclaimed industry research to our institutional customers.”