Overstock's crypto subsidiary tØ has acquired Wall Street brokerage firm SpeedRoute, a move the latter's CEO termed a "quantum leap" for securities trading.
TØ (pronounced t-zero), unveiled last month at Nasdaq's New York headquarters, is a blockchain-based equities trading platform Overstock claims could revolutionise clearing and settlement. The SpeedRoute deal, it says, marks a momentous step toward connecting the crypto and capital markets.
SpeedRoute CEO Joseph Cammarata said in a release:
While some details are yet to be finalised, an SEC filing, cited by New York Business Journal's Michael del Castillo, indicates SpeedRoute was bought for $30.3m: $11m in cash and $19.3m-worth of common stock in Overstock. The filing also indicates TØ owned 24.9% interest in the firm prior to the deal.
connects broker-dealers with liquidity at 11 US equity exchanges alongside 'dark pools'. The 15-year-old company is reported to handle 2.5% of order flow in the US stock market.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.