tZero, a US-based technology firm that was founded with the goal of utilising distributed ledger and smart contract technology, plans to become a registered security broker-dealer in the United States, according to market sources.
tZero aims to develop a solution for issues relating to token liquidity, while still remaining within the general framework of securities compliance laws.
tZERO’s CEO Saum Noursalehi, now aims to expand the adoption of crypto, security tokens, and mainstream trading with a one-stop-shop.
To accomplish this goal, tZERO must be an approved retail broker-dealer in the United States. Noursalehi plans to achieve approval by the second quarter of 2020.
“tZERO plans to use its crypto wallet application to scale-up adoption for security token trading,” Noursalehi said in an interview.
He added that user growth for the crypto wallet was up 40% for the first quarter and believes that more growth is possible this year.
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tZERO Markets, the future retail broker of the business, was submitted to FINRA last year. If the Company receives approval, they plan to expand trading by combined equity and traditional securities with crypto and digital assets.
Today, Overstock.com reported first-quarter earnings for 2020.
“Covid-19 has altered the landscape for many. Our retail business’s April sales are up over 120% year over year and that growth has occurred mainly in our key home furnishings categories. Several of our blockchain companies have received public attention because the problems they are solving using blockchain technology have been brought into the spotlight in the current pandemic. Areas like mobile voting, digital identity, digital currency, and supply chain tracking have become more important in our COVID-19 world. I am looking forward to the increase in tZERO platform activity I believe will result from the upcoming issuance of the Overstock OSTK digital dividend,” Jonathan Johnson, CEO at Overstock, said.
On April 16, SpeedRoute, owned by tZero, announced it broke its monthly trading volume record because of increased trading volatility, handling billions of share transactions during March. The increased volume was primarily from traditional security activity, typically mainstream equity and bond transactions, and not digital tokens, or digital securities. Noursalehi believes this was proof that their smart trade ordering systems are primed to take on future surges in digital assets as well.