Key takeaways:
- tZERO, a crypto exchange, permits the offering of assets, some of which are blockchain tokens.
- The company stated it would close this exchange on March 6 in a recent announcement made on February 3.
Overstock owns a significant stake in the tZERO Crypto exchange, which will close on March 6, according to a tweet from the firm on February 3. The company promises to focus on its regulated securities products going forward, like the Securities and Exchange Commission (SEC) of the United States and other regulators define the legal status of crypto assets.
A financial technology business with its main office in New York is called tZERO. It makes it easier for private businesses to go public by facilitating securities offerings. tZERO is well known in the crypto industry for providing tokenized shares or “digital securities,” which may be traded on a blockchain. According to tZERO’s news release from August 26, online retailer Overstock controls about 55% of the company.
In 2019, tZERO unveiled “tZERO Crypto,” a conventional cryptocurrency exchange that lets customers purchase, sell, and store cryptocurrencies like Bitcoin, Ether, Litecoin, and others. However, the corporation stated in its most recent notice on February 3 that this exchange would close on March 6.
By claiming that they think many digital assets would be treated as securities and traded in a regulated ecosystem, tZERO hinted that unlicensed crypto exchanges are quickly becoming obsolete. The announcement went on to explain:
“While the regulatory environment around crypto assets is clarified by the SEC and other regulators (including in view of recent events), we will continue to focus on our unique regulated securities business, which we believe will be the venue where most digital asset securities will trade.”
However, the most recent decision to shut down the tZero Crypto app might not spell the end of tZero’s plans to provide clients with digital asset securities. Tweeted tZero:
“Our regulated affiliates will be playing a key part in bringing compliant digital asset securities to the market including crypto assets that can be lawfully offered on a regulated securities platform,”
According to the firm, the shutdown was scheduled for March 6 to allow for the “orderly withdrawal of assets by the customers, which remain to be kept by the custodian.” It was unclear if the closure of tZERO Crypto will also impact security tokens traded on the tZERO ATS stock exchange.
