Overstock’s tZERO Announces Live Trading of Security Token

tZERO, a firm that claims to be a global leader in blockchain technology innovation for the capital markets, has announced that its security token has begun live trading and as such, investors can trade the tokens with other accredited investors by opening a digital securities brokerage account at Dinosaur Financial Group, LLC, according to a Business Wire press release on January 24, 2019.

A Significant Milestone

tZERO, the blockchain project of U.S. retail heavyweight Overstock, has announced that accredited investors holding its tZERO security tokens can now trade them with other certified investors through a digital securities brokerage account at Dinosaur Financial Group, LLC, a New York-based Financial planner, which serves as tZERO’s introducing broker-dealer.

Per the press release, in a bid to make the secondary trading process a huge success, its subsidiary, PRO Securities, LLC, a firm whose primary objective is to offer an “alternative trading system to provide market access for the tokens during market hours initially,” registered by the Securities and Exchange Commission (SEC).  

Commenting on the remarkable milestone,  Patrick Byrne, founder of Overstock.com and executive chairman of tZERO, stated that:

“A new efficient and transparent path for capital formation through blockchain technology is now a reality,”

He adding that the firm is working tirelessly to make it possible for security tokens to revolutionize the capital markets, while also helping firms to eliminate intermediaries in their processes and achieve trust through distributed ledger technology (DLT)

The Journey So Far

Founded in 2014 by Medici Ventures Inc., a wholly-owned subsidiary of Overstock, tZERO says it’s looking to bring transparency and efficiency to Wall Street and the global markets via the groundbreaking blockchain technology.

tZERO launched the sale of its security token via an initial coin offering (ICO) in December 2017 to raise $250 million. The fundraiser was targeted at accredited investors only, and the firm entered into a Simple Agreements for Future Equity (SAFEs) with participants at the time.

As reported by BTCManager in March 2018, the U.S. Securities and Exchange Commission (SEC) pointed its searchlight on tZERO’s security token offering (STO); however, the platform came out unscathed at the end of the entire process.

Earlier in August 2018, BTCManager informed that GSR Capital, a Hong Kong-based private equity firm had invested $270 million in tZERO.