tZERO, BOX Digital Seek SEC Approval For Security Token Exchange

Announcements, News | June 20, 2018 By:

Overstock’s subsidiary tZero and BOX Digital Markets are seeking approval from the US Securities and Exchange Commission (SEC) to launch the world’s first security token exchange.

Last month, the two companies entered into a letter of intent to negotiate an equal joint venture that would operate as a facility of the BOX Options Exchange for the trading of security tokens in the US. Yesterday, the parties announced that the joint venture has officially been formed with tZERO and BOX Digital sharing economic ownership and board representation equally. They said they will now seek approval from the SEC prior to beginning operations.

“We will work closely with the SEC to create a framework for the safe and efficient trading of security tokens and our joint venture with tZERO marks a significant step that brings us ever closer to creating the industry’s first regulated exchange for security tokens,” said Lisa Fall, CEO of BOX Digital and CEO of the joint venture.

tZERO will power the technology required to create and operate the joint venture, as well as manage the ongoing technology implementation, administration, maintenance and support. BOX Digital will provide executive leadership and regulatory expertise.

“With BOX’s experience in building and operating a sophisticated equity options marketplace and tZERO’s blockchain technology, we have brought together our organizations’ combined expertise to create a more efficient capital market that will benefit traders and issuers,” Fall said.

Saum Noursalehi, CEO of tZERO, said that the joint venture will create the first fully regulated security token exchange and fundamentally improve the way capital is raised and traded across different asset classes.

“Teaming up with Box Digital will allow us to complement our alternative trading system, already under development, with a separate, regulated platform, expanding the reach of our technology to security token issuers of all types, from micro-cap issuers to SEC reporting companies,” Noursalehi said.

Patrick Byrne, CEO of Overstock and Executive Chairman of tZERO and the visionary behind the entire concept, said it was a “great honor” to be selected by BOX as their partner in this “historic endeavor.”

“I believe the greater investing community does not yet understand the extraordinary changes blockchain is going to bring to global capital markets,” said Byrne.