tZero to Launch Broker-Dealer, Seeks Fund from External Sources

The platform currently lists two tokens.

tZero, the blockchain subsidiary Overstock, is planning to launch its retail broker-dealer platform called tZero Markets.

In a 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.

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“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,” Noursalehi noted.

The platform is also aiming to list more security tokens on tZero ATS in the “coming weeks”. Launched in January 2019, the platform was aiming to list five security tokens last year, however, due to legal and regulatory concerns, only two tokens are currently listed on the exchange.

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It is now working with one broker-dealer – Dinosaur Financial – but it has already signed agreements with five additional broker-dealers. In addition, the company is also in talks with “several dozen broker-dealers” to add their support on the platform.

“Much of our focus last year was on 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,” the CEO added.

Need to fund the project

The company is also considering to raise additional funds from external sources later this year or early next year, the letter revealed.

Last May, the platform raised $5 million from GSR Capital, however, the venture capital signed an agreement to put a total of $400 million into the blockchain firm.

“As Overstock management mentioned recently, it is committed to funding tZERO,” the letter stated. “As our business continues to develop in the first half of the year and we continue to hit milestones and prove out the business model further, it may become appropriate to approach external sources of capital in late 2020 or 2021.”