Overstock.com embarks on initial blockchain offering
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Overstock.com embarks on initial blockchain offering 19 December 2016New York Reporter: Mark Dugdale
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Overstock.com has become the first public company to offer its shares for trading via blockchain.
Through its subsidiary, t0, Overstock.com offered more than 126,000 shares via technology based on the blockchain. The share offering commenced on 16 December.
Keystone Capital agreed earlier this month to support the initial blockchain offering as securities broker-dealer.
Under their agreement, Keystone will provide brokerage services for market participants seeking to trade blockchain securities.
t0’s technology allowed investors to create digital trading accounts with Keystone upon commencement of Overstock’s issuance subscription period.
Overstock.com CEO Patrick Byrne commented: “It’s no secret that Overstock’s own financial technology subsidiary, t0, has been working on a blockchain version of Wall Street, and that Overstock desires to demonstrate its system by issuing a security of its own on the technology it is creating. Keystone Capital has aligned with us in this historic effort.”
In June 2015, Overstock.com became the first public company to issue a private security using blockchain technology.
The US Securities and Exchange Commission gave Overstock.com permission to issue blockchain shares in a public offering in December 2015.
It is widely believed that Overstock.com and t0 will soon turn their attention to the securities lending market, with blockchain technology understood to be able to ensure T+0 settlement.
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