The US Securities and Exchange Commission (SEC) has reportedly approved Overstock's plans to issue stock via the blockchain through its subsidiary tØ platform.
According to Wired, the company was granted an amended Form S-3 – a requirement solely for companies that report under the Securities Exchange Act of 1934 – meaning that it could now issue public securities leveraging blockchain technology.
It is still unclear when the company will issue its first public security on a distributed ledger but Patrick Byrne, Overstock's CEO, told Wired:
The reports of the approval come after Byrne revealed Overstock's long-awaited blockchain-based private and public equities trading platform – known as tØ – in August this year at Nasdaq's New York headquarters.
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.