Overstock Subsidiary tZero Unveils Security Token Trading Software Prototype

Announcements, News | April 10, 2018 By:

tZERO, the blockchain subsidiary of e-commerce giant Overstock, has revealed the prototype of its planned security token trading software.

tZERO said the platform is designed to trade blockchain tokens in an easy, compliant, and user-friendly manner. The system is integrated with tZERO’s existing 15c3-5 risk management software, order management system, matching engine, and proprietary technology to support the eventual trading of security tokens. The company has released a video demonstrating how the blockchain platform works and is seeking public feedback on the prototype ahead of its full release, which is expected to take place in May.

Overstock and tZero chief executive Patrick Byrne said the platform has been developed to compete with traditional stock exchanges by integrating cryptographically-secured distributed ledgers with existing market processes to reduce settlement time and costs, and increase transparency and efficiency.

tZero president Joe Cammarata said they are still waiting for federal regulators to weigh-in on security tokens before launching the full platform.

“Technologically speaking, we anticipate the security token trading software will be ready to trade security tokens in May, subject to developing further regulatory clarity,” said Cammarata. “We have been working hard on getting this prototype right and look forward to user feedback.”

tZERO’s security token will be the first to trade on the platform. The security token’s private offering commenced on December 2017. Last month, the company announced that it had extended the security offering until May 14. tZERO will enter into Simple Agreements for Equity (SAFEs) only with accredited investors pursuant to the terms and conditions set forth in the Offering Memorandum, dated March 1, for the token sale.

In January of this year, tZero was chosen to provide advisory services to WENN Digital to ease the token offering of KODAKCoin, the currency for KODAKOne’s Image Rights Management Platform. KODAKCoin will be the first third-party security token to launch on tZero’s security token platform.