by JP Buntinx
The blockchain is of great importance to a lot of companies all over the world. Keystone and Overstock.com subsidiary t0 will partner up to issue public equities on a blockchain. A proprietary blockchain-based trading technology will be used. This is another validation of distributed ledgers being viable in the financial sector.
t0 Combines Blockchain With Traditional Securities
Overstock.com has been a big supporter of Bitcoin and its underpinning technology for quite some time now. By focusing on the blockchain through its t0 subsidiary, the group wanted to help change the future of finance. In fact, Patrick Byrne as well as others see this effort as creating the “blockchain version of Wall Street”. Furthermore, the CEO of Overstock envisions the future of the platform as a way “...to partner with entities on Wall Street that want to partner with us, in order to disrupt the parts of Wall Street that don’t want to partner with us.”
The name t0 has become synonymous with finance-oriented blockchain development in recent years. This majority-owned subsidiary of Overstock.com is focusing its attention on commercializing financial technology. With a strong focus on cryptography and blockchain, it only seemed a matter of time until they attracted mainstream attention. The company has been around since October 2014, and they have positioned themselves as pioneers in bringing transparency and efficiency to capital markets.
Applying the blockchain to securities settlement sounds like quite the challenge. At the same time, Overstock.com became the first public company to issue private securities on a blockchain in 2015. Ever since the company received its SEC S-3 filing approval, they were eligible of issuing blockchain shares in a public manner.
Keystone Capital Is A Valuable Partner
Keystone Capital will provide their brokerage services for market participants interested in trading blockchain-based securities. Users will be able to set up their digital trading accounts with Keystone, once the Overstock issuance subscription period has commened. For now, that date has yet to be announced.
Keystone Capital’s Steven Capozza stated,
“We are very excited to be a part of this cutting-edge opportunity. Everyone speaks about using blockchain technology, but very few are actually making it happen. We are also thoroughly enjoying working with such a talented group of technologists on the t0 team.”
All of this goes to show the world of finance will face significant changes in the coming years. Demonstrating the power of distributed ledgers by issuing a security of the same technology is a significant milestone for blockchain development. Having a valuable partner in the form of Keystone Capital on board makes this historic effort all the more exciting.