tZERO Unveils New Security Token Trading Software Prototype

tZERO, a subsidiary of Overstock, appears to be ready to contribute to the maturation of the crypto market and has recently released a prototype of its planned security token trading software.

Launched from a highly successful December 2017 ICO that captured over $100 million USD in just 12 hours, the tZERO platform is designed to create a regulatory-compliant platform that facilitates the trade of security token trading.

The tZERO project aims to create an ecosystem in which both traditional and emerging security types can be traded, with the stated goal of "'democratizing, expanding and strengthening capital markets.

The tZERO platform can be considered to be an alternative trading system, and functions as a dark pool that is registered with the US Securities and Exchange Commission.

The tZERO ICO itself, which is still ongoing, is being hosted by SAFTLaunch, which is a secure and compliant equity token platform that only makes white paper details available to accredited, verified investors.

tZERO's native token is explicitly defined in the tZERO white paper as a mechanism through which the tZERO team will raise capital to support tZERO's business, and, according to tZERO, is the first "Preferred stock security token" issued in accordance with US federal and state securities laws.

While the tZERO ICO deadline extension may be alerting some investors due to a perceived lack of interest from the market at large, the tZERO team has been steadily working toward the release of a prototype of the tZERO trading software.

The release of the prototype doesn't mean the tZERO platform itself is ready to launch.

"Technologically speaking, we anticipate the security token trading software will be ready to trade security tokens in May, subject to developing further regulatory clarity. We have been working hard on getting this prototype right and look forward to user feedback."

The viability of the tZERO platform hinges entirely upon potential regulatory changes that would see ICOs subjected to a framework that requires specific tokens to be reclassified as "Security tokens." Whether or not this eventuality will occur remains to be seen, but the tZERO team will be prepared if it does.