Online retail giant Overstock’s blockchain subsidiary tZERO has signed an agreement to create what could be the world’s first regulated exchange for trading security tokens.
Earlier in April, tZERO has unveiled the prototype of its planned security token trading software. Last month, it announced its joint venture plans and entered into a letter of intent with BOX Digital to launch a regulated security token exchange. The joint venture will seek approval from the U.S. Securities and Exchange Commission (SEC) prior to beginning operations.
“There is no doubt that security tokens are the future of capital markets,” said Saum Noursalehi, CEO of tZERO. “tZERO and BOX Digital will create the first fully regulated security token exchange and fundamentally improve the way capital is raised and traded across different asset classes. Teaming up with Box Digital will allow us to complement our alternative trading system, already under development, with a separate, regulated platform, expanding the reach of our technology to security token issuers of all types, from micro-cap issuers to SEC reporting companies.”
tZERO said that it will power the technology required to create and operate the joint venture, as well as manage the ongoing technology implementation, administration, maintenance and support. BOX Digital will provide executive leadership and regulatory expertise.
Upon obtaining SEC approval, the joint venture will operate as a facility of BOX Options Exchange, an existing registered U.S. securities exchange.
