Overstock Subsidiary tZERO Starts Handing Control Of Tokens To Investors
tZERO, a subsidiary of online retailer Overstock, facilitating security token trading, has started the process of handing investors direct control of tokens purchased from the company last August.
tZERO CEO Saum Noursalehi explained in detail the steps to be carried out for gaining control of the tZERO security tokens in a letter forwarded to investors late Thursday.
Back in August, tZERO successfully completed the $134 million offering, while disclosing in October that it had finished issuing tokens, which were then kept locked in a custodial wallet until 10 January, as explained in a press release at the time.
Noursalehi wrote “As you are aware, on October 12, 2018 we completed the issuance of the tZERO security tokens. The tokens have been locked up in wallets maintained by tZERO on behalf of our token holders for 90 days following the issuance. Now that the three-month lock-up period has concluded, you must decide where to hold your security tokens.”
As per the letter, investors now have two alternatives: to establish a trading account with broker-dealer and tZERO partner Dinosaur Financial Group or to simply hold tokens in a private wallet subject to a two-factor authentication process, according to tZERO.
What is unclear at the moment is exactly when tZERO is slated to start actual security token trading on its new platform.
In the note to investors, tZERO asked to “look out for another tZERO update regarding the commencement of security token trading.” Jonathan Johnson, the president of Medici Ventures – which oversees Overstock’s blockchain efforts, including tZERO – told CoinDesk last month that the security token platform will officially go live in January. A prototype of it was unveiled last April.