Overstock Subsidiary Raises $160 Mln for World's First Security Token Exchange

The world's first security token exchange, tZERO confirmed a $160 million investment by GSR Capital.

Through a security token offering, GSR Capital entered a $160 million purchasing agreement of 16 million tZERO security tokens for the world's first security token exchange.

Each tZERO security token is priced at $10 per token.

According to China Money Network, GSR's purchase of tZERO security tokens will not constitute company equity but will entitle investors to dividends.

T0.com security token exchange is a majority-owned subsidiary of retail mogul Overstock.com, established with the mission of integrating commercial-scale blockchain applications into the financial sector through a new security token software.

Unlike utility tokens or coins, security tokens are an emerging class of cryptocurrencies that function and behave similarly to traditional securities.

Security tokens are currently the only subset of cryptocurrency to be fully-compliant with regulatory frameworks for exchange and issuance.

Although less accessible by a broader audience of potential investors, security tokens offer companies a way to avoid legal risks and protect investors through clear guidelines.

"We are overwhelmed by the support we have received from all of our investors, and thrilled to have GSR on our team as we seek to launch the world's first security token exchange. This investment from GSR further validates tZERO's strategy to introduce blockchain to capital markets, and this partnership will accelerate our global expansion efforts."

To accommodate GSR's $160 million investment, tZERO extended its security token offering until August 6, 2018.