TZERO, a subsidiary of Overstock, has launched its crypto mobile app, which allows users to store, buy and sell bitcoin and ethereum.
The new mobile wallet app, released on Thursday (June 27) and called the tZERO Crypto App, eliminates the need to hold digital assets with third parties, as doing so can lead to vulnerabilities and theft. The app is available on iOS devices, with Android capabilities to follow in the near future.
TZERO’s primary operations are in the blockchain industry. The company was founded in 2016 and currently has headquarters in New York.
“We are excited to introduce the ability to trade and store cryptocurrencies in your mobile wallet,” Saum Noursalehi, CEO of tZERO, said in a press release. “The tZERO Crypto App is a significant milestone in our plans to provide an intuitive experience for trading all digital assets.”
As part of tZERO’s app launch, biometric authentication features will be integrated into the identity verification process for users. Biometric authentication involves integrating human characteristics to verify individuals. In addition, the app has a private key recovery system if users need to recover their private keys or smartphone.
In May, tZERO partnered with BOX Digital Markets Group to launch a security token exchange, the first of its kind in the world. The two companies filed with the US Securities and Exchange Commission (SEC) to develop the Boston Security Token Exchange (BSTX).
According to the Block, tZERO raised US$5 million in May from Hong Kong-based private equity firm GSR Capital. This amounted to just 2 percent of the initial funding promised by the firm in August. Last year, tZERO signed an agreement to receive US$404 million in private equity financing from GSR Capital. After the announcement, Overstock shares climbed almost 20 percent.
“There is no doubt that security tokens are the future of capital markets and we are excited to be working to continue to advance this evolution of the industry through creation and trading of blockchain-based tokenized securities,” said Susan Chamberlin, chairman of BSTX, in a press release.
TZERO reported net revenues of US$4.49 million for the first quarter of 2019. Net losses before tax totaled US$15.37 million. The company reported US$15.55 million in corporate support costs, the bulk of its company expenses.
In its filings in May, the SEC reported that it was continuing its investigation into the initial coin offering by tZERO in 2017, which generated US$104.8 million in proceeds. In addition, tZERO is facing lawsuits dated March 31, 2019 regarding patent infringements for its electronic transaction methods.
The launch of digital wallets has gathered steam. HSBC (NYSE:HSBC) announced that it is launching its own digital version; according to the Financial Times, HSBC is viewing its wallet launch as a way to generate new business. The bank has signed 3,000 registered users.
The Balance has tested and reviewed a number of bitcoin wallets, and its best wallets of 2019 include Coinbase, Trezor and Electrum.
Shares of Overstock opened on Thursday at US$12.77 and closed at US$13.02, representing a 2 percent increase.
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Securities Disclosure: I, Dorothy Neufeld, hold no direct investment interest in any company mentioned in this article.