BlackStar Digital Trading Platform™
BlackStar Digital Trading Platform™ ("BDTP™") is BlackStar's proprietary peer-to-peer digital equity trading platform, enabling the trading of free-trading BlackStar common shares in digital form only.
The Company intends that BDTP™ will be a tool for trading securities within the existing FINRA and SEC regulated brokerage ecosystem, addressing many of the regulatory issues by operating within the existing confines of the system. Customers will continue to use brokerage accounts and broker dealers, and the transfer agent will continue to maintain the shareholder records. All custodial duties remain the same, as BDTP ™ will pass encrypted customer and account information and buy/sell orders to relevant parties. As intended, the system would operate in the following manner: broker-dealers would invite customers to participate as users on the BDTP™ to buy and sell BlackStar Digital Equity; the broker-dealers comply with all FinCen and Exchange regulations, KYC and FinCen rules, submit IRS tax reports, etc.; orders, bids, and offers are entered into the BDTP™ (like a specialist’s order book) either by broker-dealers or by customers through trading software supplied by the broker-dealers; BDTP™ records all transactions; and finally, an Alternative Trading System (“ATS”) quoting digital prices and the SEC/FINRA would have complete and transparent access to the data stored in BDTP™ , offering a single data interface and consolidated history of transactions. BDTP™ seamlessly integrates with the order entry processes, priority rules, and execution procedures of the existing brokerage ecosystem. Although not a profit center, BlackStar intends to charge the broker-dealer a $0.99 cent fee per customer introduced to the platform to cover expenses, and broker-dealers may recover the fee in their ticket charge. The Company will engage further software developers as needed for blockchain implementation on the BDTP™ platform.
The Company has built the technology based upon the Quantum Ledger Database, a blockchain framework from Amazon Web Services (“AWS”), and to use the AWS Cloud for transaction data storage. BDTP™ would offer a web-based interface for trading transactions as well as an Application Programming Interface (API) that directly accesses all immutable transactions stored on BDTP™. Using BlackStar’s concept ‘Blockchain First™’, cash and shares of customers are recorded directly to the blockchain.
The Company currently seeks a partnership with a broker dealer or an ATS for a quoting service, similar to our current listing of our common stock with OTC Markets Group. The execution of a trade on the blockchain will be reported back to those broker dealers for clearing and settlement. Upon execution of a trade on the blockchain, the last price, volume, change and current bid-offer ladder will be disclosed to the public by the quoting service. The clearing of those digital shares will be the responsibility of the broker dealer that introduces their customer to trade on the BDTP™ blockchain.
The order flow is only transparent to the Company (or the issuer of the securities) in real time on the blockchain but can also be provided to regulators if necessary. BlackStar’s concept ‘Blockchain First™’ enables cash and share information of customers to be recorded directly to the blockchain. The BDTP™ is a private blockchain meaning only privately appointed Certificate Holders, meaning those with specifically authorized access to the blockchain data, can access and view the blockchain: BlackStar will have access to the blockchain, and could also give regulatory agencies access to the blockchain if requested. The system records all activity using an immutable blockchain ledger hosted by Amazon’s (AWS) QLDB Blockchain. It is the Company’s expectation that these built-in characteristics eventually help renew confidence in trading shares of OTC companies.
The core platform has been designed for initial use with BlackStar common stock and is thus the BlackStar Digital Trading Platform™. The platform contains three features: the main trading feature, an indication of interest feature for future offerings, and a corporate governance feature. The indication of interest feature, known as the ‘Internet Digital Offering™’ or IDO™, would record indications of interest for potential, initial or secondary future offerings proposed by the public or private company that subscribes to our customized platform. The distributive ledger technology on a blockchain would enable them to gauge interest on a first come first serve basis. This IDO™ feature, only for use in self-underwriting situations, includes a method of facilitating a public or private offering for a company on an immutable blockchain; this may consist of the subscriber company uploading a preliminary prospectus to the platform if they are interested in raising capital, collecting a list of company shareholders, and collecting a list of non-company shareholders who have met at least a minimum threshold for potential interest in investing in the company, then prioritizing potential investors meeting the set requirements by the recorded timestamp and distributing the offering materials to them at the appropriate time in compliance with existing rules and regulations, including Know Your Customer. The final feature would record corporate governance information about a public company on an immutable blockchain; this includes a method of preparing for and complying with a financial statement audit, recording general corporate matters, recording financial and accounting matters, recording tax filing matters, on the immutable blockchain at least every 30 days, wherein each recording comprises a time stamp of receipt, and wherein each recording cannot be subsequently manipulated or changed. The corporate governance and indication of interest features can be made available to regulators in real-time.
Once BDTP™ is live, the Company intends to market the platform to other publicly traded companies as a subscription service with an Issuer-specific customizable interface. This subscription service, BlackStar’s ‘Blockchain Equity Trading™’ or BET™, would enable each subscriber company to have access to their own trading platform, based on our core platform, where shares of their company’s common stock could be traded.
For further information about the Company, the current status of our products, and risks associated with the Company, the stock, and the products discussed here ("RISK FACTORS"), please refer to the most recent filings with the Securities and Exchange Commission.
BlackStar intends to build trading platforms for subscriber companies based on the BDTP™ model and offer the platforms through a subscription service called BlackStar ‘Blockchain Equity Trading™’ (“BET™”).
If you represent a US-based publicly traded company listed on OTC Markets and are interested in receiving information about the custom subscription trading platform, please submit the form below. Please include the name of the company and trading symbol in the message. BlackStar may contact you with information when available (please note that information may not be available immediately).