tZERO, a security token trading platform and subsidiary company of online retail giant Overstock, has just won a patent for its “Crypto Integration Platform” that will act as “an interface between legacy trading systems and crypto exchanges that trade digital transactional items.”
The filing claims that the platform can be used to hold initial public offerings and offerings of securities registered with the US Securities and Exchange Commission, as well as “by the general public to trade those securities in secondary market transactions.”
Digital security exchanges, such as @tzeroblockchain, a subsidiary of https://t.co/P0uDN98GkE, Inc., were founded to facilitate #transactions and pioneer the future of #financialservices. $BTC
The Unicorn: tZERO https://t.co/hn7fqJaTxu — Mike Rogers, CPA (@MillennialMike7) December 10, 2018
Overstock’s tZERO System Will Allegedly Determine Best Prices Before Securing Assets and Signing Transactions
As described in the patent, these “digital transactional items” include tokens, securities, digital shares and assets, and cash equivalents. Once the system receives an order from a broker-dealer, the system will “locate the best price in the crypto market for the digital asset or liability involved in the transaction.”
According to the filing, the system will then use blockchain technology to verify the availability and ownership of the “digital transactional items” involved in the trade. Once the items are secured, the orders are translated into crypto trades on a digital exchange. Each transaction is then cryptographically signed by the system, a process which may eventually require the development of “special-purpose hardware” according to the patent document.
“In doing so, the Crypto Integration Platform takes a protocol for trading and communication between broker-dealers, Alternative Trading Systems (‘ATS’), and exchanges, and transforms the message so that the trade can be consummated using cryptographic techniques,” the patent reads.
While no specific date has been set for the launch of tZERO’s platform, it is expected to go live sometime this year.
tZERO Already Active despite No Official Launch, Overstock Presses Forward
Despite the fact that tZERO hasn’t been officially launched, the Overstock subsidiary has already begun to work on some Blockchain initiatives. In December, private equity firm GSR Capital contracted tZERO to develop a smart contract token to be used in cobalt sales. The token is also expected to be completed sometime this year.
Overstock's tZERO to Develop a Cobalt-Backed Token for Hong Kong Investor https://t.co/17zWdRUUFW via @CoinDesk
— tZERO (@tzeroblockchain) December 17, 2018
Overstock made itself a name in the cryptocurrency industry all the way back in 2014 when it became the first major retailer to accept payments in Bitcoin worldwide. In August of 2017, the company announced that it would also accept Payments in some major altcoins.
Since then, the company appears to have made an effort to stay on the cutting edge of crypto integration--last week, the company announced that it would become one of the first retailer’s to take advantage of the fact that Ohio now accepts tax payments in cryptocurrencies.
This week in crypto:
1. Overstock using BTC to pay taxes 2. Consensys & AMD build cloud computing 3. DX Exchange launching tokenized stocks 4. Thai government digitizing voting onchain 5. Bakkt raised $182 million 6. Fortnite store accepts Monero No one can stop the progress! — Pomp ? (@APompliano) January 5, 2019
