An official statement published January 24 has confirmed that secondary trading of security tokens on tZERO, Overstock.com’s subsidiary crypto platform, is live.
Now, accredited investors have the ability to trade security tokens through brokerage accounts at Dinosaur Financial Group. Dinosaur, which is based in New York, will act as a broker-dealer.
Dinosaur has formed a partnership with PRO Securities, a subsidiary of tZERO. The partnership offers an “alternative trading system” that provides access to secondary trading of tZERO security tokens. According to the statement, trading will initially only be available during market hours.
“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.” https://t.co/Xh0MuT6XOJ pic.twitter.com/NA83wSa8RK
— tZERO (@tzeroblockchain) January 25, 2019
tZERO CEO Saum Noursalehi believes that previous to the launch of tZERO’s platform, “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,” he continued. “This will create liquidity, democratize access, bring transparency and efficiency to global markets and accelerate the adoption of security tokens.”
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The Unicorn: tZERO https://t.co/hn7fqJaTxu
— Mike Rogers, CPA (@MillennialMike7) December 10, 2018
News that the platform will soon be launched originally broke last week. At the time, Overstock CEO Patrick Byrne said that the company was “ready to hit the button and go live today, but was waiting a few more days to process user signups.”
tZERO’s Prototype Was Launched in May, But the Project Started in 2014
A prototype of tZERO’s trading platform was originally launched in April of 2018, but the platform’s history extends farther back than last year. The Overstock subsidiary was originally founded all the way back in 2014.
When the prototype was launched, Byrne commented that “in August 2015, Overstock used tZERO’s blockchain technology to issue what we believe was the world’s first private blockchain security, a $5 million bond to First New York Securities.”
Then, “in December 2015, Overstock filed with the SEC an S-3 registration statement to register a preferred stock digital security utilizing tZERO’s blockchain technology, which was subsequently declared effective in December 2016.”
Earlier this month, tZERO began distributing its own security tokens, which were purchased by more than 1000 investors during the platform’s token sale in August of 2018.
Meanwhile, Overstock is seeking to make a complete transition into the blockchain sphere. In November, Byrne announced that the company plans to sell its decades-old online retail businesses over the next few months as it focuses on becoming a blockchain business.