The company has delayed the launch of the final version of the trading platform until May as it is still developing further regulatory compliance.
tZero, a fintech subsidiary of online retail giant Overstock, has unveiled the anticipated prototype of its security token trading software. The demo video, showing how the tokens may be traded on the platform, was released on Monday.
tZero is a fully-owned subsidiary of Overstock that focuses on fintech development using the blockchain technology. Since its launch, the company has been committed to bring greater efficiency and transparency to capital markets with the use of the blockchain technology.
“In August 2015, Overstock used tZERO’s blockchain technology to issue what we believe was the world’s first private blockchain security, a $5 million bond to First New York Securities,” said Overstock CEO, Patrick Byrne.
“In December 2015, Overstock filed with the SEC an S-3 registration statement to register a preferred stock digital security utilizing tZERO’s blockchain technology, which was subsequently declared effective in December 2016. Overstock used that S-3 to issue what we believe was the world’s first public blockchain security, OSTKP, utilizing tZERO technology once again. Now we are unveiling tZERO’s security token trading software: the astute viewer of our progress can look at this, and the collection of strategic assets we have assembled, and get an idea of the breadth of what we intend,” he continued.
According to tZERO president, Joe Cammarata, the full release of the software is scheduled for next month and, meanwhile, the company is waiting for public feedback and has asked its potential users to provide comments to info@tzero.com.
“Technologically speaking, we anticipate the security token trading software will be ready to trade security tokens in May, subject to developing further regulatory clarity. We have been working hard on getting this prototype right and look forward to user feedback,” he said.
In December, 2017, after completing a successful presale of more than USD 100 million, tZero launched a private crowdsale to accredited investors, but has recently extended the offering to May 14, 2018.
In January, tZero partnered with Kodak and WENN Digital WENN Digital to facilitate the upcoming token offering of their KODAKCoin. The company is going to provide its advisory services, such as clearing, reconciliation, price quoting, encryption of accounts, and anti-money laundering (AML) and know-your-customer (KYC) verification. KODAKCoin will become the first third-party security token on the tZero platform.
Earlier this year, Overstock, together with a number of other companies, received information requests from the U.S. Securities and Exchange Commission (SEC) as part of their crackdown on ICO operators. The regulatory agency requested tZero to disclose details of their $250 million token sale campaign, including information on how the company ensures ICO investors are accredited. Byrne, however, was not concerned about the investigation and claimed the company was “super compliant” with federal securities laws.
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