GLASS

What is GLASS

GLASS is a decentralized liquidity and settlement network for crypto trading platforms and exchanges. Participating exchanges will deepen their liquidity, drive incremental transaction volume and settle compliant token transactions in all jurisdictions, even if regulators deem these tokens to be securities. The GLASS network will be initially anchored by SharesPost’s U.S. Alternative Trading System for digital and other unregistered securities.

The SharesPost Global Liquidity and Settlement System (“GLASS”) will be a decentralized network that enables crypto platforms to pool liquidity and settle compliant cross-border token trades Exchanges could boost trading volumes without materially slowing transaction processing speeds by connecting with counterparties on other exchanges. The platforms can market to and serve customers even if regulators deem those tokens as securities in that jurisdiction.

To increase transaction volume, token trading platforms will submit buy and sell orders for some or all of their tokens to the network. The network will connect buyers and sellers from different exchanges, pooling the collective liquidity of participating exchanges. The system could inspire confidence among exchange clients that they are getting the best available price for their purchase or sale. SharesPost’s escrow technology could eliminate counterparty risk between exchanges. The combined liquidity will generate network effects for GLASS and the participating exchanges. As more platforms join the network, GLASS could accumulate even more liquidity compared to non-participating platforms, thus giving them a stronger incentive to sign up.

The network could also eliminate the need for exchanges to determine whether tokens are securities in a particular jurisdiction. Each jurisdiction/country will feature one or more licensed entities (e.g., broker-dealer, Alternative Trading System, etc.) on the network to settle trades in that jurisdiction. Regulators should not penalize participating exchanges because a local regulated entity will make sure each trade complies with local securities laws. The distinction between utility tokens and security tokens will become largely irrelevant because entities licensed for securities transactions will settle the trades. As a result, exchanges can move to acquire customers in the United States and other jurisdictions now actively regulating securities tokens.