Overstock’s Blockchain Subsidiary tZERO Purchases 24% Stake in StockCross Financial

On Friday Overstock’s blockchain subsidiary tZERO announced it purchased a 24% ownership stake in StockCross Financial Services, Inc., a FINRA member firm and a U.S. DTCC member Firm. According to tZERO, the investment in StockCross adds a key partner with the custodial and clearing functionality of a U.S. DTCC member firm to tZERO’s trading ecosystem. While sharing more details about the investment, Joseph Cammarata, President of tZERO, stated:

“We view our acquisition of 24 percent of StockCross, and our relationship with the Gebbia family, as another key step toward achieving our goal of being the first fully regulated security token trading platform. This collaboration unlocks enormous potential and provides us with enterprise-level economies of scale for both of our companies.”

tZERO reported that the investment also begins the strategic relationship between it and StockCross. Under the terms of the transaction, the company has acquired a 24% interest in StockCross for $12 million. tZERO will also receive approximately 1.2 million shares of Siebert. Patrick M. Byrne, CEO of tZERO and Overstock, then commented:

“Our vision is to bring the benefits of blockchain capital markets to the world without imposing large switching costs on participants in the current US National Market System. To achieve that, we are inch-by-inch stitching together a blockchain capital market which we intend to integrate into the current U.S. National Market System. This investment in StockCross, a FINRA member firm and a DTCC member firm, is a large step in that direction.”  

tZERO added that in a separate transaction, it purchased a 1% ownership interest in Kennedy Cabot Acquisition, LLC, the controlling owner of Siebert. As a result of the company’s ownership in Kennedy Cabot Acquisition, LLC, it will own beneficially approximately an additional 200,000 shares of Siebert. tZERO’s beneficial ownership of Siebert shares will total approximately 1.4 million shares or 5.3% of Siebert’s outstanding shares.

Sponsored Links by DQ Promote



Send this to a friend