tZero, together with Argon Group and RenGen, announced that it will create an alternative trading of tokens that are issued through initial coin offerings.
If nearly $2 billion raised in funding wasn’t enough for the kind of year digital tokens are having, well we’ve got some news for you.
On Wednesday (September 27), tZERO, a subsidiary of Overstock.com (NASDAQ:OSTK), announced a joint venture with RenGen LLC and the Argon Group to create a digital tokens exchange.
Described as an alternative trading system, the new partnership aims to support the trading of security tokens as per the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA).
With the SEC regulating initial coin offerings in July, it’s certainly been a profound few months for ICOs.
“With ICO blockchain offerings surpassing traditional early stage VC funding and US regulators seeking legitimate venues to support security token offerings, with this JV tZERO continues to maintain its leading edge in blockchain financial technology,” Overstock CEO Patrick M. Byrne said in the release.
Byrne continued, adding that tZERO has been at “the forefront of the blockchain revolution for years,” having worked with regulators since 2015 by launching the first SEC compliant ATS as it relates to blockchain assets, the first private blockchain bond offering, and first public issuance of a blockchain security.
According to Bloomberg, Byrne added that the exchange will start with ICOs, “but all the forces of economics will drive blue-chip issuers to this.”
As per the joint press release, the joint venture will make it easier for companies to trade tokens over blockchain in a safe and legal way.
“We have long been advocating that issuing digital tokens as securities gives issuers and purchasers the greatest certainty about the legal regime that applies to the sale and the widest range of options to provide an attractive return for investors,” Emma Channing, CEO and General Counsel of the Argon Group said in the release.
Channing also said that one of the biggest issues has been the need for an “appropriate marketplace” that offers liquidity. “This joint venture between tZERO, RenGEn and Argon has the potential to completely change the face of ICOs.”
On that note, Overstock isn’t new to blockchain technology.
In December of last year, the company announced that it had started trading its stock on tZERO’s private blockchain, making it the first in history to trade on an alternative trading system using distributed ledger technology.
Since Wednesday’s announcement, shares of Overstock have climbed an impressive 23.45 percent to close at $28.95.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.