Portfolio Company tZERO Starts Distributing Its Security Token
tZERO, the portfolio company and security trading platform, has started to distribute its security tokens after a sale that ended back in August 2018. tZERO is the portfolio branch of Overstock.
Saum Noursalehi, the CEO of tZERO wrote a letter to investors explaining the steps taken by the company to protect tZERO tokens and how the custody process will be. Back in August, the company gathered $134 million and in October it finished the issuance of these tokens. The tokens were held in a custodial wallet until January 10, 2019.
According to Noursalehi, users will now to decide how they want to hold and store their tokens. The company held the funds on behalf of its customers for a long period of time.
Noursalehi explained about this:
“As you are aware, on October 12, 2018 we completed the issuance of the tZERO security tokens. The tokens have been locked up in wallets maintained by tZERO on behalf of our token holders for 90 days following the issuance. Now that the three-month lock-up has concluded, you must decide where to hold your security tokens.”
Users will now have to decide whether to create a brokerage account with Dinosaur Financial Group or hold the tokens in a personal wallet. The Dinosaur Financial Group is a broker-dealer and partner of tZERO. Additionally, users that decided to hold their digital tokens in their personal wallet and would like to move their tokens into a digital securities brokerage account with Dinosaur will be able to do it.
Nevertheless, it is not clear when tZERO is going to start trading the security token on its platform. Indeed, the company informed that they will be releasing another update on the matter.
According to previous comments made by Jonathan Johnson, which is responsible for the blockchain operations both at Overstock and tZERO, the security token platform will go live as soon as January.