Overstock’s blockchain arm tZERO has announced its intention to launch its cryptocurrency and digital asset broker-dealer service in the first half of 2020.
In a review letter to the investors, tZero’s CEO Saum Noursalehi revealed that the company is targeting to launch the new platform in the first half of this year.
The firm added it could seek additional funding from external sources in late 2020 or early 2021.
According to Noursalehi; this is an important initiative as it will allow us to integrate our web and mobile app experiences in the future, enabling investors to trade digital securities and cryptocurrencies on one platform.
As previously stated, tZERO’s Boston Security Token Exchange filed an application with the SEC to approve the launch of a market for publicly traded registered security tokens, in October 2019.
Launched in January 2019, tZERO received $5 million in funding from GSR Capital in May, missing its fundraising target by 98.7 percent.
Notably, the Overstock management parent company of tZero noted that it is fully committed to funding the firm.
“Much of our focus last year was on the building. We allocated our capital, both human and financial, on acquiring the necessary regulatory approvals (which is on-going).
Developing our trading/digital securities technology, and building the leadership team necessary to advance our company vision,” said Noursalehi.
He also noted that tZERO is on a mission to list five security tokens on its exchange, tZERO ATS, in 2019. However, legal and regulatory concerns delayed such a process.
Currently, tZERO has two tokens listed on the exchange and one broker-dealer, Dinosaur Financial.
tZero CEO added that the firm is expected to list its third security token in the coming weeks and onboard five additional broker-dealers.
Broker-dealers receive SEC approval
In November 2019, Harbor, a digital platform for alternative assets, received a transfer agent license from the SEC.
The license enables Harbor to maintain financial records of security token ownership, track account balances and payout dividends while attracting blockchain companies that are looking to conduct Reg A+ offerings.
The blockchain-based startup Blockstack was the first-ever digital token offering to receive the go-ahead from the SEC to run a $23 million investment round under Regulation A+.
Founders of Blockstack Muneeb Ali and Ryan Shea reportedly spent 10 months and approximately $2 million to get approval from the SEC for a Reg A+ offering.