18 October 2017

Overstock unit preps ATS for trading digital coins issued in ICOs

28 September 2017  |  5255 views  |  0 Stock market graph

The blockchain subsidiary of online retailer Overstock is teaming up with RenGen and Argon Group to launch an SEC-compliant Alternative Trading System (ATS) for trading digital coins issued in initial coin offerings (ICOs).

The ATS sees Overstock's tZero unit and its partners try to tap into the ICO craze, which has emerged as a popular way for firms to raise capital, bringing in more than $2 billion in the last two years.

However, regulatory concerns have seen many potential investors put off, affecting liquidity. In July, the SEC said that any digital token with an income stream is a security and that security tokens may only be traded on an ATS or national securities exchange.

Overstock acquired a license for an ATS when it bought Pro Securities back in 2015 and says that the new platform will be in compliance with SEC and Finra regulations.

The ATS will combine tZero’s blockchain-based trading platform with RenGen’s ability to provide liquidity, market making and algorithm technology, and the Argon Group’s ICO advisory experience and security token clients. SaftLaunch will provide AML and KYC capabilities.

Patrick Byrne, CEO, Overstock, says: "With ICO blockchain offerings surpassing traditional early stage VC funding and US regulators seeking legitimate venues to support security token offerings, with this JV tZero continues to maintain its leading edge in blockchain financial technology."

The plan sent shares in Overstock soaring, closing yesterday up 23.45%, or $5.50, at $28.95.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Online retailer Overstock starts accepting Bitcoin Cash and Ethereum

Online retailer Overstock starts accepting Bitcoin Cash and Ethereum

09 August 2017  |  18309 views  |  0 comments | 16 tweets | 8 linkedin
Overstock's Medici Ventures takes stake in Symbiont

Overstock's Medici Ventures takes stake in Symbiont

27 July 2017  |  8969 views  |  0 comments | 4 tweets | 2 linkedin
Overstock invests in blockchain voting firm SettleMint

Overstock invests in blockchain voting firm SettleMint

08 November 2016  |  6524 views  |  0 comments | 6 tweets | 5 linkedin
Overstock preps blockchain public offering

Overstock preps blockchain public offering

16 March 2016  |  6575 views  |  0 comments | 3 tweets | 9 linkedin
Overstock explores spin off of cryptotrading unit

Overstock explores spin off of cryptotrading unit

13 November 2015  |  6126 views  |  0 comments | 8 tweets | 6 linkedin
Overstock issues first 'cryptobond'

Overstock issues first 'cryptobond'

08 June 2015  |  4986 views  |  1 comments | 8 tweets | 7 linkedin
Overstock buys stake in ATS for digital securities push

Overstock buys stake in ATS for digital securities push

20 May 2015  |  4818 views  |  0 comments | 1 tweets | 1 linkedin
Overstock looks to issue Bitcoin-style stocks

Overstock looks to issue Bitcoin-style stocks

29 April 2015  |  6196 views  |  0 comments | 3 tweets | 3 linkedin
Overstock ponders the possibility of a 'cryptosecurities' exchange

Overstock ponders the possibility of a 'cryptosecurities' exchange

01 August 2014  |  10859 views  |  0 comments | 5 tweets | 1 linkedin

Related blogs

Create a blog about this story (membership required)
visit www.innotribe.com visit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
15313 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8495 views comments | 16 tweets | 22 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
8013 views 0 | 8 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
7536 views comments | 13 tweets | 9 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6639 views comments | 8 tweets | 16 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job