tØ, a subsidiary of online retail giant Overstock.com focused on blockchain technology, is going to conduct an initial coin offering (ICO), utilizing a Simple Agreement for Future Tokens (SAFT).

tØ Chairman Patrick M. Byrne recently announced key details on the proposed ICO at the Money 20/20 conference. He said that the tZERO SAFT pre-sale is expected to open on November 15, 2017 and run until December 31, 2017.

Pursuant to tZERO's SAFT, purchasers will enter into SAFT agreements that will produce digital tokens of tZERO that will be issued at a later date.

Byrne pointed out that the underlying tZERO token is expected to constitute a security, within the meaning of U.S. securities laws, and will therefore be considered a "security token," rather than an app token. The token will be tradable on tZERO’s U.S.-regulated Alternative Trading System (ATS).

The proceeds from the tZERO SAFT sale will be dedicated towards scaling tZERO's technology development and regulatory teams in order to maintain its leading edge. It will also be used to potentially acquire or establish a custody and clearing firm to complement tZERO's existing infrastructure.

"The tZERO team worked hard to be at the tip of the spear in creating and launching credible, capable and institutionally scalable blockchain technologies for crypto assets. Today those efforts are attracting interest from both the crypto community and the largest global institutional funds,” Byrne said.