Bitcoin's long-time supporter Bruce Fenton has created a new broker for digital asset companies and financial advisers called Watchdog Capital.
The firm is registered with the US Securities and Exchange Commission and a member of the Financial Regulatory Authority, the public indicates. It is a subsidiary of the digital securities company Chainstone Labs, also headed by Fenton, founder of the Satoshi Roundtable conference. He was also a board member of the Overstock tZERO Security Token Platform and served as the 2015-2016 Executive Director of the Bitcoin Foundation.
"Many lawyers have advised their lawyers to become a broker," Fenton said. "What we can do is give a mandate to a representative, who can have his own business."
Watchdog is able to underwrite securities, investment banking, crowdfunding, Reg A + offers, start real estate investment trusts and perform OTC transactions for individuals and institutions.
Fenton started the licensing process for a broker about nine months ago and was allowed to operate in July, but he has had an idea since April 2016 when The DAO was created. , a decentralized and unfortunate autonomous organization.
"At the time, knowing the regulations so well, I said," It's not going to fly with the SEC, "Fenton said. "I wanted to acquire a business and hire staff because I think the tokens will become a big problem … I thought that they were going to be for the most part declared values."
Watchdog serves as a back office for crypto and blockchain companies as well as individual representatives such as financial advisors. Independent financial consultants may use the Watchdog license to exchange cryptographic data with interested customers.
"They could be in a big cable company like Merrill Lynch … In some cases, business representatives are not even allowed to discuss bitcoin," he said.
Fenton describes this process as "decentralized" because Watchdog Capital allows financial advisors to manage their businesses as they wish.
He would not say what percentage of Watchdog's activities with companies related to crypto and blockchain would constitute, but he predicted that all assets will be marked in the future, including government bonds. (In December 2018, Chainstone entered the space by issuing 12.4 million shares in the form of digital tokens).
"You can not move your Apple stock and you absolutely can not move shares of your favorite restaurant in the same way that you can move a token," said Fenton. "If you can target these investments, it will open up many exciting doors for you to build capital and transfer money around the world."
Image of Bruce Fenton via the CoinDesk Archive.