Overstock’s (NASDAQ: OSTK) digital subsidiary tZero has purchases a 24% stake for $12 million in StockCross Financial Services, Inc., a U.S., DTC Clearing Firm. This announcement comes on the heals of tZero investing in Kennedy Cabot Acquisition, a FINRA approved Broker Dealer and the parent of Siebert Financial.
tZero said that under the terms of the agreement, upon closing, the shareholders of StockCross have agreed to reinvest $3 million into StockCross for “forward strategic investments.” Additionally, pursuant to the Siebert and StockCross agreement announced on May 8, 2017, the tZERO stake will entitle tZERO to a one-time distribution of approximately 1.2 million shares of Siebert, according to the deal terms. Upon completion of these transactions, tZERO portfolio companies will own approximately 5% of Siebert.
Rewiring Wall Street
“As we have told the world, we intend to leverage our expertise to develop a trading platform capable of trading security tokens, and we expect clearing capabilities to be central to this endeavor,” explained Patrick Byrne, CEO of Overstock. “Today, we take the first step toward integrating a clearing function into the tZERO ecosystem. Today is the culmination of a Herculean effort between our team and the Gebbia Family of companies to begin a rewiring of Wall Street. This will be recognized as a monumental step in the adoption of crypto capital markets. I applaud the Gebbia family for sharing our vision, and for collaborating so productively. Our teams are excited to be pushing forward together.”
Gloria E. Gebbia, Director, and the Gebbia family, are majority owners of Siebert and StockCross. Gebbie commented on the announcement;
“As we ring the closing bell today at the NYSE to celebrate the 50th Anniversary of Mickie Siebert’s pioneering achievements in becoming the First Woman of Wall Street, it will be a fitting tribute to launch the next chapter of innovation with Overstock, tZERO, Siebert and StockCross changing Wall Street. On behalf of Siebert, StockCross and the Gebbia family, we welcome Dr. Byrne and tZERO into our family and look forward to combining forces to change Wall Street again. We intend to become the first investor friendly, U.S. regulated, fully integrated crypto clearing and brokerage firm in the world, and we look forward to doing it with tZERO.”
Byrne is a determined blockchain believer having embraced the potential for digital currencies early on. Expect more announcements from tZero as Byrne and his team execute on their vision for a crypto-driven future of finance.
tZero is in the midst of an Initial Coin Offering (ICO). Listed on Saftlaunch, the ICO expects to raise $250 million for a securities token.
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