tZERO and BOX Digital to launch first regulated security token exchange

Posted: 22 May 2018 1:54 pm
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tZERO will contribute cash and blockchain tech, while BOX Digital will provide staff and business expertise.

A joint venture proposed by tZERO and BOX Digital will see the two companies partner to institute an exchange to list and publicly trade regulated security tokens, utilizing blockchain technology for market operations.

Earlier this month on May 18, the two companies entered into a letter of intent to form the digital exchange.

BOX Digital is a subsidiary of BOX Holdings Group, which owns equity options marketplace BOX Market.

BOX Digital CEO Lisa Fall will become chief executive of the currently unnamed joint venture exchange project. There will be equal representation from both companies on the digital exchange’s Board of Directors.

tZERO, owned and operated by American internet retailer Overstock, will contribute cash and license its own distributed ledger technology (DLT) for the security token marketplace. BOX Digital will lend its expertise and personnel toward obtaining regulatory approval from the U.S. Securities and Exchange Commission (SEC).

The exchange will be the first-of-its-kind to integrate blockchain capital markets into the current system.

The platform may offer companies the option to hold formally regulated initial coin offerings (ICOs) and could encourage public firms to create stock tokens and list them on the new digital exchange.

Last month, Overstock revealed the prototype for its tZERO trading platform, designed to support its forthcoming security token that is currently being sold through an initial coin offering (ICO).

tZERO reported that it raised $100 million during the discounted pre-sale for its ICO. The company has begun its subsequent sale period, offering tokens at a price of $10 each, subject to discounts and other concessions. On March 1, 2018, tZERO announced that it had extended the security offering until May 14, 2018.

Around the same time, the company had its ICO placed under review by regulator, the Securities and Exchange Commission (SEC), requesting tZERO provide certain documents related to the offering and the tokens.

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