On May 22, 2018, Overstock subsidiary teamed up with BOX Digital Markets to launch the industry’s first security token exchange. The two have entered into a letter of Intent to form an exchange for the listing of publicly traded security tokens.
BOX Digital and tZERO Joint Venture
tZERO has to contribute cash for the formation of the joint venture as well as to operate the token market. BOX Digital, on the other hand, is to contribute expertise and personnel for obtaining regulatory approval and running the token exchange. Unlike cryptocurrencies, security tokens are digital representations of financial assets such as stocks, real estate, or debt.
“I would like to see something trading in Q3,” Overstock CEO Patrick Byrne Reuters in a phone interview.
BOX Digital CEO, Lisa Fall, is to become the Chief Executive Officer of the joint venture that is to be equally owned. tZERO and BOX Digital are to have equal representation on the board of directors with one mutually agreed independent director.
“tZERO’s track record and accomplishments in this innovative area, coupled 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,” said Fall.
Overstock Chief Executive Officer, Patrick Byrne, expects the exchange to be up and running sometime before the third quarter. However, the two need approval from the U.S Securities and Exchange Commission () to create the proposed regulated security token exchange.
tZERO Regulatory Scrutiny
It awaits to be seen if tZERO will succeed with its new security token exchange push as it is currently undergoing severe regulatory scrutiny. In March 2018 the SEC revealed that it had started reviewing the firm’s Initial Coin Offering (), which Overstock hosted.
The company was in the process of raising money as it sought to create an alternative trading system. So far, it has raised in funding. While the SEC has confirmed the company is not in any legal trouble with the ICO push, it is still uncertain if the outcome will have any impact on the proposed plan to launch a security’s token exchange.
A move by tZERO and BOX Holdings to form security tokens comes at a time of increased uncertainty over regulation of the cryptocurrency space. Virtual currency prices have taken a hit as a result of investors becoming wary of the kind of rules that could come into play going forward.
Some countries have already token sales, and there have been concerns that U.S regulators could follow suit given the proliferation of fraudulent token purchases. The SEC has already conducted sweeping probes on companies and firms that have raised money through ICOs.
VRBex Security Token Exchange Push
tZERO and BOX Digital are not the only ones planning to launch a . VRBex has also announced plans to operate a crypto exchange as well as a security token trading platform. According to the company’s Chief Operating Officer, David Powell, token holders represent an interested and motivated group of future customers that will shape security token exchange platforms.
The is to make about 135 million security tokens available for purchase with , , USD, and Euros. The platform is open to investors who satisfy the applicable suitability standards as VRBex plans to be fully compliant with U.S. laws and regulations.
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The only thing missing in the digital currency space was a payment processor that was powered by the acclaimed . To this effect, the introduction of OpenNode satisfies that need and being the first of it’s kind, and it indeed looks like a promising innovation.
OpenNode’s Features
A platform suitable for businesses of all sizes, the tools and features are designed to ensure that using is more accessible for both customers and merchants. This advent also eliminates the barriers that are usually faced while making bitcoin transactions such as high transaction fees and technical integrations.
Transacting with bitcoin along the famed Lightning Network will be instant and will incur almost zero fees. Things like the OpenNode payment processor will return bitcoin to a convenience medium of exchange. There’s even hope of bitcoin payments becoming easier than credit card transactions.
With the bitcoin network growing quickly and mass-adoption following closely in the mainstream market, a group of bitcoin designers and lightning network explorers are on a product to simplify the current suite of crypto tools. The developers believe a genuine user experience will be the stepping stone in this process.
User-Friendly Interface
(Source: )
OpenNode boasts the following features:
Multiple payment options: Lightning & on-chain
No frauds or chargebacks
Competitive pricing
In-house dashboard
Automatic and manual withdrawals
Customizable plugins & convenient APIs
The Roadmap
To edge an inch closer to perfection, the people at OpenNode are testing it with their own community and working on feedbacks in real-time. Furthermore, to better scale their services, multiple new merchants will be called on-board.
and other e-commerce platforms will be getting plugins to make OpenNode available at various webstores. The firm is also in talks with PoS businesses and other resources to introduce Lightning Network-enabled devices. As stated on the blog:
“There is a lot of work ahead, but we couldn’t be more excited to pave the way for this revolutionary technology with all of you.”
Previously, the team worked on similar products, with the end-goal of augmenting rate. As per the blog, the team also contributed to the world’s first Lightning Network wallet: .
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Wer die Nachrichten der letzten Wochen aufmerksam verfolgt hat, dem ist eines aufgefallen: Immer mehr Banken und regulierte Finanzdienstleister wagen den Schritt in Richtung Krypto-Ökonomie. Auch aus Kundenperspektive ist dies durchaus nachvollziehbar, denn ein großer Teil der Bevölkerung und vor allem institutionelle Investoren wollen entgegen dem Blockchain-Narrativ nicht „ihre eigene Bank sein“ und die volle […]Der Beitrag erschien zuerst auf .
