Overstock’s tZero Starts Live Trading
tZero, the crypto subsidiary of e-commerce major Overstock.com, announced on Thursday, January 24 that the secondary trading of its tokens, the tZero, has started live trading.
New Partnerships
According to the announcement, accredited investors can trade these tokens via the Dinosaur Financial Group LLC., which is the new platform’s customer-facing broker-dealer.
Dinosaur has partnered with Pro Solutions LLC, a subsidiary of tZero, to provide the platform with an ATS (alternative trading system) for the secondary trading of the crypto startup’s tZero tokens.
tZero’s Chief Executive Officer Saum Noursalehi stated that security tokens space has been missing a venue for regulated secondary trading. He said that launching trading of their native tZero token has been a critical step in the world of cryptocurrencies.
According to Noursalehi, this new trading option will create greater liquidity, democracy in the access process, and improve efficiency as well as transparency in global markets. He said that it would also speed up the adoption of security tokens across the world.
The Creation of a New Platform
It was in April of 2018 that tZero created the prototype of a new trading platform for securities tokens. Patrick Byrne, the Chief Executive Officer of tZero’s parent company, Overstock.com, this was done so that they would have an idea about the breadth of what tZero’s trading platform could offer.
To this end, tZero completed its STO (security token offering) in August last year and raised about $134 million from more than one thousand investors across the globe.
The STO was first introduced as an ICO (initial coin offering) in December of 2017, after its concept attracted interest from major institutional as well as crypto investors. However, in March of 2018, the US SEC (Securities and Exchange Commission) raised objections to this ICO.
The SEC claimed that the tZero token was a security and so an ICO was against regulatory guidelines. The company had filed the ICO under the SEC’s D and S regulations, rather than as a security. Thus, the ICO was scrapped and instead, the company launched a highly successful STO.
Patenting Its Product
tZero has now filed an application to patent its platform. The company has termed it a crypto-integration platform focused on the trade of cryptocurrencies.
According to the company’s filing, it had created a system that can receive orders for trading transactional items that are digital from various broker-dealers. Then, these orders will be translated into orders for trading cryptocurrencies on an exchange. These transactional items would consist of tokens, cash equivalents, securities, digital shares as well as digital assets.