Overstock’s blockchain subsidiary, tZERO, plans to open security token trading to all on August 12. When the e-commerce giant initially announced tZERO tokens secondary trading was live in January, it was only open to accredited investors. Accredited investors are typically institutions and wealthy individuals. As an alternative trading system which uses blockchain technology, the Securities and Exchange Commission regulates tZero. Buyers and sellers trade via a dark pool; T Zero is not a broker. The company acts more like a matchmaker. TZero grew out of Overstock’s Medici, their earliest attempt to utilize blockchain technology.
TZERO was established in 2014 with the mission of using blockchain technology to improve transparency for investors and provide alternative to listing on a stock exchange and to provide secure over-the-counter trading. TZero can offer advice to other companies which want to raise capital by offering tokens. It can also offer verification services. Companies could build their own platform like tZero, but it would be expensive and require expertise. TZero is positioning themselves as a cost-effective solution.
There's two tokens investors can trade on tZERO’s platform; TZEROP. Overstock's initial token offering and the company's A-1 preferred stock. The CEO of tZERO expects up to 50,000 new Overstock investors to start trading.
To help the company handle the influx of new investors, tZERO hired three new managers; Head of Issuance Brooke Navarro, Head of Investor Relations Michael Mougias and Gead of Communications Alexandra Sotiropoulos. Navarro will seek out other companies which are considering a token offering and adopting tZERO’s technology.
Overstock's tZERO will tokenize an upcoming movie, Atari: Fistful of Quarters. The token's name is Bushnell, after the man who founded Atari. and Vision Tree, a movie finance and production company will sell it and investors will receive a share of the movie's earnings.