Overstock‘s tZERO, the global leader in blockchain innovation for capital markets, has announced that its much-anticipated security token trading platform tZERO is now live.
As the press release states, accredited investors can now trade tZERO security tokens with other accredited investors through a digital securities brokerage account at Dinosaur Financial Group, LLC, which will act as the introducing broker-dealer. Dinosaur has partnered with PRO Securities, LLC, a tZERO subsidiary, which offers an alternative trading system to provide market access for secondary trading of the tZERO security tokens, during market hours initially.
Elliot Grossman, Senior Vice President at Dinosaur Financial Group said:
“We are impressed with what tZERO has achieved and we are looking forward to being a part of the blockchain revolution. We see this as a truly evolutionary step toward improving transactional transparency for investors, while providing an efficient and secure alternative to over-the-counter trading or a listing on one of the legacy stock exchanges for companies seeking to raise capital.”
Patrick M. Byrne, tZERO executive chairman and Overstock.com CEO, said:
“A new efficient and transparent path for capital formation via blockchain is now a reality, but those who have followed our journey know that today’s announcement is just one more step down a path. tERO is working toward a world where security tokens revolutionize traditional capital markets, and companies achieve trust through cryptographically-protected algorithms rather than through rent-seeking middlemen.”
Saum Noursalehi, tZERO CEO, commented on the event:
“The world of security tokens has lacked a regulated venue for secondary trading,” said “The trading of our own security tokens is the crossing of the Rubicon for the new world of digital assets. This will create liquidity, democratize access, bring transparency and efficiency to global markets and accelerate the adoption of security tokens.”
How It All Began
Investors in the tZERO token offering have long been waiting for the launch of the platform. In 2015, Overstock’s CEO Patrick Byrne revealed the plans to create tZERO, a blockchain-based trade settlement platform that promised to change the financial market by enabling instantaneous transactions.
In December 2017, Overstock.com announced that its Blockchain subsidiary tZERO had started ICO selling. In the first day of funding, tZERO raised $100 million. The maximum amount of tokens was limited to $250 million.
In August 2018, tZero and Overstock got $400 million from Hong Kong-based equity firm GSR Capital. After the announcement, Overstock shares jumped as much as 21 percent in after-hours trading. Moreover, Overstock and GSR Capital also signed a purchase agreement according to which GSR Capital would buy $30 million in tZero Security Tokens from Overstock.
In December 2018, tZERO announced that they were hired by GSR Capital in order to develop a new crypto token which will be used specifically for trading cobalt. The deal is to be closed by February 2019.
In January this year, tZero started distributing control of its tokens, which means that investors got the option of choosing where to hold their security tokens, either by creating a brokerage account with Dinosaur Financial Group, a tZero partner and broker-dealer, or holding them in a person wallet with a two-step verification system.
On January 18, during the North American Bitcoin Conference in Miami, Overstock CEO Patrick Byrne announced that the exchange would launch in a couple of days. Giving the information, Byrne stated that the trading platform was ready for launch but a few more days were needed to process user signups.
Finally, the platform is live, which means the first step toward trading other digital assets has been made.