Record Alternative Trading for Blockchain Pioneer tZERO

As private companies wait longer before going public, their options for secondary liquidity remain limited. Last month, blockchain pioneer tZERO Group, Inc., announced record trading volume for its subsidiary, tZERO ATS, an Alternative Trading System for both security tokens and U.S. equities. With 816,000 digital securities traded in July, tZERO ATS experienced its strongest month yet, surpassing its previous record of 423,000 traded digital securities in May, as reported by Forbes. Notably, tZERO now accounts for about 95% of security token trade volume and 80% of total token dollar value, according to tZERO Group CEO Saum Noursalehi in a company newswire.

Trading in Private Shares

As a FINRA member broker-dealer founded in 2003 and registered with the Securities and Exchange Commission (SEC), tZERO ATS empowers investors to trade shares of private companies as easily as they trade traditional stocks. In fact, in 2016, tZERO ATS became the first company to report a blockchain-based security trade.

According to CEO Noursalehi, ASPEN digital tokens and Overstock’s digital dividend, OSTKO, drove the high trading volume on the tZERO ATS platform, rather than traditional stock transactions. The well-known retailer is tZERO’s parent company, and both OTSKO and tZERO's token, TZROP, are up since the beginning of the year. Additionally, tZERO is planning a capital raise in early 2021. “We have had new broker-dealers come on-line, and more retail investors, helping to drive word-of-mouth interest,” Noursalehi added. One may view tZERO ATS trading volume publicly on its data feed or the third-party website Stomarket.com.

A Breakthrough in Real Estate and Crowdfunding

Financial Technologies Forum (FTF) named tZero as this year’s recipient of its Best Blockchain Breakthrough of the Year award. Among other crowdfunding trends, there is now an emerging opportunity for commercial real estate issuers and investors. Specifically, liquidity solutions offered by tZERO Group fill a largely unmet need for these investors. Conveniently, live trading can often take place only a few weeks after signing. Furthermore, those who are not accredited investors may often still participate in these digital real estate transactions. Non-accredited investor participation greatly increases the pool of potential investors in a private placement offering. Many other private offerings, such as those that use Rule 506(c) of Regulation D, do not allow non-accredited investor participation. Instead, Rule 506(c) offerings require issuers to verify investor accreditation status for all who participate. This means that these issuers are responsible for confirming financially sensitive information, such as income and net worth, for all their investors. Fortunately, as a third-party service, VerifyInvestor.com engages highly experienced attorneys to handle this extremely confidential duty with ease, taking some of the burdens off of issuers.

tZERO Innovations

In addition to the Alternative Trading System offered by tZERO Group’s subsidiary, the company offers the tZERO Crypto app. Investors in alternative markets utilize the app to buy, sell, and manage their cryptocurrency portfolios securely. Through the app, investors store their cryptocurrency wallets securely on their phones, and tZERO’s proprietary recovery technology is available, even if phones and private keys get lost.

As a pioneer tokenization service provider and a marketplace for the trade of digital securities, tZERO is focusing on tokenizing and trade high-quality securities across a variety of industries including real estate and pre-initial public offering (IPO) companies. tZERO has been on the cutting edge of tokenization developments from the very beginning. tZERO is an important tentpole company to keep an eye on as the finance industry shifts towards digitalization.

Please note that VerifyInvestor.com is a subsidiary of tZERO Group, Inc.