The tZERO trading platform has just announced that secondary trading of its security tokens that were distributed to investors earlier this month, is now live. Accredited investors can now trade tZERO security tokens with other accredited investors through a digital securities brokerage account at Dinosaur Financial Group, LLC. The latter will acts as a broker-dealer. The firm has partnered with PRO securities, LLC, which is a subsidiary of tZERO.
Earlier on in the month, teams at both Overstock and tZERO had notified the investor community that the trading platform would start operations by the end of this month. The CEO of Overstock.com, Patrick Byrne, explained that the launch of tZERO has been four years in the making. With secondary trading now live, what remains is the full launch of the online platform.
The New Industry that is Securities Token Offering and their Trading
The ICO boom of 2017 and 2018 led many regulatory bodies across the globe to step in to protect investors from fraudulent activities and the corresponding losses incurred from such investments. In the case of the American SEC, direction was a bit slow but they finally issued a directive that some ICOs fall under the category of securities offerings. This led many keen entrepreneurs and firms, to note that Securities Token Offering (STOs) will be the next big thing in the world of crowdfunding.
tZERO CEO Saum Noursalehi, explained why security tokens were much safer than other tokens obtained from the usual ICOs.
The world of security tokens has lacked a regulated venue for secondary trading. The trading of our own security tokens is the crossing of the Rubicon for the new world of digital assets. This will create liquidity, democratize access, bring transparency and efficiency to global markets and accelerate the adoption of security tokens.
Other Exchanges Targeting Security Tokens
The Nasdaq powered DX.Exchange went live on the 7th of this month. Users of the exchange can now trade the cryptocurrencies of Bitcoin (BTC), Ethereum (ETH), XRP , Bitcoin Cash (BCH), EOS (EOS), Digibyte (DGB), Enigma (ENG) and Litecoin (LTC). They also have the option of trading tokenized versions of traditional stocks such as Apple, Facebook, Tesla, Microsoft, Amazon, Netflix, Descartes Systems Group, Baidu, Intel, Google and Nvidia.
Earlier this week, the team at Zilliqa and MaiCoin announced their partnership to work on the new Hg Exchange. The vision of new exchange is to provide regular investors access to high-growth startups such as Uber, Airbnb, Space X, Grab and Didi Chuxing.
What are your thoughts of more exchanges offering trading of tokenized securities? Is this a glimpse of the future of investing? Please let us know in the comment section below.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.