New US Security Token Exchange To Be Created And Launched In Partnership With tZERO & BOX Digital Markets
Many people know tZERO as a blockchain company that is a subsidiary of both Overstock.com and BOX Digital Markets. However, on May 18th, 2018, they released a statement to let the public know that they’ve partnered with BOX Digital to offer a security token exchange of their own. The two parties signed a “letter of intent” to establish the exchange, which gives the opportunity to both trade security tokens from the exchange, or to use assets to acquire the tokens.
During the partnership, both companies have representation on a new board of directors to ensure equal opportunities for each. However, the main director of the company will be a neutral decision by tZERO and BOX Digital together.
The CEO of the exchange will be the current CEO and president of BOX Digital – Lisa Fall. Lisa Fall released a statement about the new venture:
“tZERO has proven to be a pioneer in the development and practical use of blockchain technologies for capital markets for a number of years. tZERO’s track record and accomplishments in this innovative area, couples with BOX’s expertise in operating a highly efficient and transparent equity options marketplace, made partnering together an easy decision and we look forward to building a world-class platform for listing and trading security tokens.”
The new CEO of tZERO, Saum Noursalehi, said:
“Our partnership with BOX Digital Markets is a significant milestone that will create the first SEC-regulated exchange designed to efficiently trade crypto securities. Lisa Fall’s leadership, reputation, and deep experience in the regulated securities exchange industry will be a major asset in achieving this objective. Together, we will continue to work with the SEC as we develop a first-of-its-kind platform that will integrate blockchain capital markets into the current U.S. National Market System.”
In the agreement, each company has its own function. tZERO’s roll will be to dedicate necessary cash, while offering their licensed blockchain technology for the joint security token. BOX Digital’s role is to add their expertise, along with their employees, to help with the operation of this platform.
This new exchange will need to be approved through the U.S. Securities and Exchange Commission, once the company has clear documentation. However, the only way this partnership will be made into a reality at all is with definitive documentation and certain conditions that both parties agree upon.