Bitcoin Global News (BGN)
August 14, 2018 -- ADVFN Crypto NewsWire -- Overstock’s
blockchain subsidiary tZero raised $270m from Chinese private
equity firm, GSR Capital, in addition to stake in Overstock.com and
funding to the tZero ICO. The ICO likely reached their intended
goal of $250 million, but an official statement has not been
released yet.
tZero
tZero is a full leap into the
fintech industry. The platform is host to an alternative trading
system for securities and a cryptocurrency wallet in collaboration
with another startup called Bitsy. The platform has been in testing
phases since 2015
To date, tZERO has the only
platform that has ever traded a digital security, and continue to
perfect the token trading system for tokenized securities. The
company owns two SEC registered and FINRA Member broker-dealers,
SpeedRoute LLC, a premier routing and execution firm, and PRO
Securities LLC, an Alternative Trading System (ATS). Pro Securities
was the first SEC and FINRA regulated ATS to enable and support
secondary trading of a crypto security.
tZERO’s Digital Locate Receipt
software provides market participants with a more transparent,
efficient, and compliant solution for the lending and borrowing of
securities. Their trade routing services over 125 broker dealers
and offers connectivity, market access, smart order routing, and
algorithmic trading solutions. This technology is already
supporting 15 to 18 million traditional orders per day, but can
scale over 100 million orders per day.
Growing Funding
Plan
$270m would be one of the largest
single investments in a blockchain startup. The deal is planned to
close in December 2018. However, there is $134 million more from
GSR spread to the tZero ICO and Overstock.com stock, which surged
almost 17% following the announcement of the GSR
investment.
In exchange for an 18% stake in
tZero’s blockchain-based crypto exchange, GSR purchased a 10% stake
in Overstock. 3.1m shares were purchased for $104 million. The
shares were purchased at a 5% discount to the closing stock price
on August 1st.
For the ICO, $30 million worth of
tZero tokens were purchased, bringing the total investment to
$404m. This had a massive effect on the overall valuation of tZero,
rising to $1.5 billion. The ICO closed last week after opening to
the public last December. It was designed specifically with SEC
compliance in mind, and was investigated by the regulators earlier
this year.
CEO Patrick Byrne was asked what
his thoughts on what this huge investment means to tZero and
competing platforms, replying that “it means everyone else just
lost."
By: BGN Editorial Staff
News:
tZero
Blockchain
Cryptocurrency
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