A group of traditional finance veterans has initiated the development of Ironlight, a digital marketplace aimed at tokenizing real-world assets (RWAs) and securing approval from the U.S. Securities and Exchange Commission (SEC) to operate as an alternative trading system (ATS).

Headed by Rob McGrath, former global head of trading at Schroders and Abu Dhabi's sovereign wealth fund ADIA, along with Matt Celebuski, previously a founder of a brokerage acquired by Abel Noser, Ironlight seeks to revolutionize the trading of illiquid assets such as real estate, fine art, and private equity.

The company, which has attracted $12 million in investment primarily from high-net-worth individuals with a Wall Street background, plans to leverage distributed ledger technology (DLT) to facilitate seamless transactions between buyers and sellers. Unlike many cryptocurrency exchanges, Ironlight's focus remains on traditional asset tokenization, eschewing plans for cryptocurrency trading on its platform.

"We wanted to be a part of the sea change in financial markets," Celebuski stated, emphasizing Ironlight's commitment to regulatory compliance. The team is actively pursuing registration as a regulated broker-dealer by the Financial Industry Regulatory Authority (FINRA) and anticipates SEC approval for operating as an ATS in the coming months.

Ironlight's entrance into the market reflects the convergence of traditional finance and digital asset industries, with both sectors increasingly embracing tokenization as a means to enhance efficiency and accessibility in global financial markets. The company's strategic partnership with sovereign wealth funds, pension funds, and traditional market makers underscores its dedication to fostering liquidity in the tokenized asset space.

As Ironlight progresses through regulatory processes, industry experts anticipate its potential to significantly impact liquidity for tokenized assets, particularly if it garners substantial interest from market participants.