Under the deal, Keystone Capital will offer brokerage services for investors seeking to trade blockchain equities via the TØ platform.
“It’s no secret that Overstock’s own financial technology subsidiary, TØ, has been working on a blockchain version of Wall Street, and that Overstock desires to demonstrate its system by issuing a security of its own on the technology it is creating. Keystone Capital has aligned with us in this historic effort,” said Overstock’s CEO, Patrick M. Byrne.
Shareholders will be able to create trading accounts with Keystone after the start of Overstock’s issuance subscription period.
“Keystone Capital is a visionary company that grasped immediately the importance of the revolutionary technology we’ve built,” said Jonathan Johnson, chairman of Overstock.com’s board of directors. “It’s been a pleasure working with such a forward-leaning firm.”
Steven Capozza of Keystone Capital noted the company is excited to participate in the first ever issuance of blockchain-based public securities. “We are very excited to be a part of this cutting-edge opportunity. Everyone speaks about using blockchain technology, but very few are actually making it happen. We are also thoroughly enjoying working with such a talented group of technologists on the TØ team,” he said.
The other securities offered by Overstock.com include a fintech subsidiary Medici, Inc. which is focused on using the blockchain technology to solve main problems of financial trsnactions.
Patrick M. Byrne unveiled its plans to issue first public shares using the bitcoin blockchain this Match, saying the technology “is going to change the world of finance forever.” In 2015, Overstock.com became the first public company in the world to issue a private blockchain security after its S-3 filing was approved by the US Securities and Exchange Commission (SEC).
TØ was announced in 2015 as a stock lending platform that can be used to issue and trade blockchain-based assets. By using the distributed ledger technology, the platform is aimed at improving efficiency and transparency of operations within capital markets.
Traditionally, the settlement of equity trades, including those on Wall Street, occurs in three days, but according to TØ the day of trade should be the day of settlement. By using the blockchain technology, the company intended to make transactions instantaneous and happen simultaneously with the trade. In addition to higher speed and reliability, the buyers of cryptosecurities are able to track the ownership of securities directly on the blockchain.