Online retailer Overstock’s tZERO security token market will allow retail traders on its platform, starting next week. Previously, only accredited investors were able to trade on the platform. Next week also marks a year since tZERO’s security token offering. This means that tokens issued during its offering a year ago can now be sold on exchanges by investors.
Currently, there are only two tokens offered on tZERO. The first one is TZEROP, the platform’s private equity token, that was issued during the STO. The other one is the digital voting series A-1 preferred stock owned by Overstock.
To boost trading on tZERO, Overstock had announced that it would issue more of the digital shares to the shareholders as a type of dividend in the coming two months. The company said that this was a type of bonus, which would also help to grow the adoption of tZERO.
A Slow Evolution of Blockchain
Overstock has slowed down expansion plans for Medici, their blockchain division that oversees various startups, including tZERO. The list of companies included in this division is varied and encompasses multiple business, such as Voatz, Medici Land Governance, and Bitt. Jonathan Johnson, head of the business, told analysts during the company’s latest earnings call that they did not expect to put in as much effort in the division’s growth as they have done.
tZERO posted losses of $10 million, more than double from the same period a year earlier, during its latest quarter. The trading platform is currently working to get a license from the NYDFS, the financial regulator in New York. The company’s Bitsy Wallet service is also seeking a money transmitter license; this service is a subsidiary of tZERO.
Growth on the Horizon?
A company official added they had not seen an uptick in sign-ups but the community had shown an interest in joining the platform. He mentioned that about 40 broker-dealers had already contacted them and they want to be part of the platform. Additionally, they had been getting numerous questions from investors who were excited about the possibility of joining the platform.
Daily trading volume on the tZERO platform has been mixed. It was just a few thousand dollars after launch and rose to hundreds of thousands of dollars this summer. Its peak thus far was on July 23, when it reached $245,547. The platform has some deals in the works. For instance, it is still negotiating with Emaar, a Dubai-based real estate company, which has expressed interest in issuing security tokens on the platform.