Tokenization, Private Markets, and ATS Growth are Driving New Broker-Dealer Formation

A new wave of broker-dealer formation is emerging, driven by:

• Tokenization
• Growth in private markets
• Expansion of alternative trading systems (ATS)

These trends are pushing more firms toward regulated infrastructure.

1. Tokenization

Digital assets are evolving – but if it’s a security, it’s still regulated. Many platforms will eventually require a broker-dealer to operate at scale.

2. Private Markets

As private transactions increase, more platforms are finding they are transitioning into broker-dealer activity.

The question becomes: Not “if”, but “when” to build or buy?

3. ATS Growth

ATS platforms continue to expand – but they don’t stand alone.

A broker-dealer is required.

4. Strategic Shift

Firms are increasingly bringing broker-dealers in-house to:

• Control transactions
• Capture revenue
• Scale efficiently

5. The Reality

The regulatory framework does change; however, the complexity still remains.

Conclusion

Broker-dealers are no longer just legacy structures. They are critical core infrastructure for modern financial platforms.

About CXG

CXG advises firms on broker-dealer formation, acquisition, and compliance strategy.  CXG helps build, buy, and operate broker-dealers.