tZERO Posts Update on GSR Investment

The record date for the Overstock digital dividend is nearing (Ex-dividend April 24 and the “Digital Voting Series A-1 Preferred Stock dividend” will be distributed on May 19th). The dividend will trade on the tZERO ATS.

Earlier today, tZERO announced that GoldenSand Capital (formerly known as GSR Capital), a private equity firm based in Hong Kong, had completed its $5 million equity investment in tZERO. GSR Ventures & GSR family of funds was co-founded by Sonny Wu and Richard Lim in 2005. In 2017, GSR was split into three independent teams, with GoldenSand Capital focusing on the investment thesis of “Building World Class New Industries”.

tZERO CEO Saum Noursalehi stated, “GoldenSand Capital understands the value of tZERO and its mission to introduce greater efficiency and transparency to capital markets by leveraging blockchain and smart contract technology. We are excited to continue working with GoldenSand Capital to achieve this mission.”

Overstock (NASDAQ:OSTK), tZERO’s parent company, is expected to report quarterly earnings at some point in May which should include an update on tZero’s progress.

Noursalehi reported earlier in the year that industry adoption of digital securities continues to progress and 2020 will be an inflection point for digital securities:

“I am pleased to report, we anticipate trading our third digital security on the tZERO ATS, in the coming weeks. I am encouraged by our recent progress and the robust pipeline that our team has developed over the past few months. While we set an ambitious objective of trading up to five new digital securities by the end of 2019, we and our partners, including the external broker-dealer participants, have to carefully work through legal and financial due diligence, regulatory matters and operations to ensure that only high-quality assets trade on the tZERO ATS. As our partners work through more of these new securities, we expect to see significant efficiencies of scale,” said Noursalehi.

While still very much in the early days of digital securities, interest is rising as well as acceptance from both investors and issuers according to the Noursalehi. While progress is being made timing is contingent upon “corporate strategies” and “regulatory considerations.”

At the time of the letter, tZeros said it was in “late-stage discussions with several issuers” that they expect to sign in the coming months. A pipeline of potential issuers was said to top 200 with real estate digital assets in the lead followed by funds and private companies.

The COVID-19 pandemic has impacted all sectors of industry it is not yet clear as to how the crisis has impacted tZERO’s roadmap.

(Editors note: an edit has been made to better reflect the timing of the letter issued by tZero. CI regrets any confusion regarding the prior version)



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