The parent company of the New York Stock Exchange is getting into blockchain
The Intercontinental Exchange, parent company of the New York Stock Exchange, has launched a push into the digital trading space, announcing a “significant minority stake” in the tZERO blockchain-based trading platform.
ICE also announced that David Goone, its chief strategy officer, will become tZERO’s new chief executive, starting next month.
The move marks an important step in the adoption of blockchain-based trading solutions in capital markets and a commitment from leading Wall Street firms in the space. The news follows a report that the NYSE has filed for a patent to trade non-fungible tokens, or NFTs, a unique digital property that often involves artwork, music and sports memorabilia.
WALL STREET’S NEW HYBRID MODEL COULD STRESS NEW YORK’S BUDGET
FOX Business has learned that the deal was brokered largely by veteran investor Marc Cohodes, who has been a strong advocate for market transparency for institutional and retail investors.
tZERO, a subsidiary of Overstock.com, is an alternative trading system and broker designed to give investors access to private and public assets such as stocks and bonds as well as cryptocurrencies and NFTs.
As a blockchain-based platform, tZERO allows trades and transactions to be settled instantly, increasing transparency and efficiency for its users. Cohodes recently came to the defense of retail investors who believe that large hedge funds are able to use the 3-day settlement period to illegally sell shares.
In a short sale, an investor borrows stock, sells it, and hopes to make a profit by settling the trade at a later date when the stock drops. An immediate settlement date would be a major impediment to short selling.
YOUR NEXT CUP OF COFFEE WILL COST YOU
tZERO has also partnered with BOX Digital Markets LLC to launch the nation’s first blockchain-enabled regulated stock exchange, known as the Boston Security Token Exchange (BSTX). The Securities and Exchange Commission approved BTSX in January and tZERO plans to use proceeds from its recent funding round to help further develop this platform which it plans to launch in the 2nd or 3rd quarter of this year.
GET FOX BUSINESS ON THE ROAD BY CLICKING HERE
“We believe the new capital injection will allow the company to scale and continue its innovation by leveraging blockchain technology to create a more efficient and transparent Wall Street, ultimately revolutionizing and democratizing capital markets,” said Overstock.com CEO Jonathan Johnson.