As part of its bid to launch a blockchain-based equities trading platform, Overstock subsidiary tØ has partnered with broker-dealer Keystone Capital Corporation.
Announced today, the move is the latest step forward in a project that began for the e-commerce giant in late 2014 with the launch of a blockchain R&D division dubbed Medici. That plan, which would find Overstock being granted approval to issue digital versions of its public shares on a blockchain, received key approval from the SEC in 2015.
In statements, Keystone Capital’s Steven Capozza said his San Diego-based firm is "excited" to provide brokerage and trading account services to traders seeking to use the tØ platform.
Capozza said:
"Everyone speaks about using blockchain technology, but very few are actually making it happen."
Data from US News & World Report indicates Keystone has $12.5m in assets under management and 143 clients.
The news follows similar announcements from last year, including Overstock's investment in Pro Securities, a New Jersey-based brokerage, as well as its acquisition of financial technology provider SpeedRoute.
However, more work appears to be needed before trading commences, as evidenced by today’s release, which indicates that Overstock will need to file a prospectus supplement with the SEC related to the offering.
Representatives from tØ were not immediately available for comment.
Overstock image via Shutterstock