Overstock: When in Doubt, Launch a Bitcoin Trading Exchange

The e-commerce retail giant has recently announced its plans to launch a bitcoin trading exchange. Overstock’s subsidiary, tZero, which went live earlier this year in January, will be leading the charge in deploying the mobile application.

tZero will seek to drive more interest to its security token platform by adding a more popular feature, a mobile trading application for the acquisition and divestment of bitcoin and other potential cryptocurrencies over time.

tZero Aims For A Holistic Platform

While facilitating security tokens is a core component of the tZero platform, it may take a while for more startups and established companies to get on board with the program. In the meantime, tZero must survive, meet objectives, and get to a state where it can thrive.

As a part of this initiative to build out a holistic platform and be relevant in the present, tZero will partner with Bitsy, a bitcoin exchange and wallet, and fellow Overstock subsidiary through its venture arm, Medici Ventures to launch their mobile trading application.

The application is set to launch this summer, it will be available for both Android and iOS. The mobile application will be non-custodial, as such, individuals will have access to their private keys.

tZero aims to create an all-in-one application which will allow users to hold and trade native security tokens, traditional stocks, and cryptocurrencies as well.

The company is in the process of obtaining a retail-broker-dealer license to bring more access to its offerings.

tZero’s Soft Opening
tZero’s interest in adding more use to its platform is not just a want but a need. There is minimal use of their security token platform at the current moment as there quite likely a lack of general interest in high volume trading security tokens across all security token platforms.

The lack of use may be due to a variety of factors on the supply side and on the demand side.

On the supply side, the company must work with more partners to go through the security tokenization process and then list on tZero. The process will include developing relationships with potential clients, vetting their financials and long-term viability, and then the final listing phase.

On the demand side, the tZero platform is only open to accredited investors, the platform is expected to be accessible to more retail traders after the lock-up period expires. As such, tZero is in the development stage and expects to have more traction in the latter half of 2019.