Overstock’s TZero Plans to Become Registered Security Broker-Dealer in Q2

E-commerce giant Overstock.com joined a host of other traditional companies in late 2017, when it announced plans to launch its own cryptocurrency. The firm introduced its cryptocurrency, tZero , via an initial coin offering (ICO).
tZero aims to develop a solution for issues relating to token liquidity, while still remaining within the general framework of securities compliance laws.

tZERO’s CEO Saum Noursalehi now plans to expand the adoption of crypto, security tokens and mainstream trading with a one-stop-shop.
To accomplish this goal, tZERO must be an approved retail broker-dealer in the United States.  Noursalehi plans to achieve an approval by the second quarter of 2020.
“tZERO plans to use its crypto wallet application to scale-up adoption for security token trading,” Noursalehi said in an interview.
He added that user growth for the crypto wallet was up 40% for the first quarter and believes that more growth is possible this year.
tZERO Markets, the future retail broker of the business, was submitted to FINRA earlier this year. If the Company receives approval, they plan to expand trading by combined equity and traditional securities with crypto and digital assets.
Today, Overstock.com reported first-quarter earnings for 2020.
Covid-19 impact
“Covid-19 has altered the landscape for many. Our retail business’s April sales are up over 120% year over year and that growth has occurred mainly in our key home furnishings categories. Several of our blockchain companies have received public attention because the problems they are solving using blockchain technology have been brought into the spotlight in the current pandemic. Areas like mobile voting, digital identity, digital currency, and supply chain tracking have become more important in our COVID-19 world. I am looking forward to the increase in tZERO platform activity I believe will result from the upcoming issuance of the Overstock digital dividend,” Jonathan Johnson, CEO at Overstock, said.
On April 16, record because of increased trading volatility, handling billions of share transactions during March. The increased volume was primarily from traditional security activity, typically mainstream equity and bond transactions, and not digital tokens, or digital securities. Noursalehi believes this was proof that their smart trade ordering systems are primed to take on future surges in digital assets as well.