As per a press release, secondary trading of tZERO tokens on the tZERO platform is now live. tZERO is the subsidiary of the E-commerce firm – Overstock.com.
The company’s executive chairman, Patrick Byrne, who is also the CEO and founder of parent company Overstock.com stated that “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.”. Further adding “tZERO 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.”
Dinosaur Financial Group will act as a broker-dealer via which the investors would be able to trade the security tokens via digital securities brokerage account. Dinosaur collaborated with PRO Securities, the subsidiary of tZERO, which would offer a substitute trading system with respect to secondary trading of tZERO security tokens.
CEO of tZERO, Saum Noursalehi, said “The world of security tokens has lacked a regulated venue for secondary trading. 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.”
The Senior Vice President at Dinosaur Financial Group, Elliot Grossman, 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.”
The prototype associated with the securities trading platform was launched by tZERO during April 2018. The prototype was launched with an intention to “get an idea of the breadth” on what was planned to offer by tZERO.
Initially, in December 2017, the company had announced the Security token offering (STO) in the form of an initial coin offering (ICO) where they had pulled the interest of strong crypto and traditional institutions. Later in the mid of 2018, the organization completed its security token offering (STO) through which it raised $134 million from around 1,000 who participated from across the world. Earlier Overstock had filed about its ICO to get classified under Regulations D and S rather than getting classified as traditional securities filing.
At the end of the first quarter of 2018, tZERO’s ICO came under examination of the United States Securities and Exchange Commission which resulted in the fall of stock price of Overstock.
tZERO had also filed a patent for a “crypto integration platform” for trading digital assets earlier this month. The patent was for a system where orders would be received to trade “digital transactional items” from broker-dealers which would then be converted into crypto order on a digital exchange. The items included securities, tokens, digital shares, cash equivalents, and digital assets.