Overstock's Regulated Token Exchange Will Launch with Own ICO

Retail giant Overstock.com is to launch its new regulated token exchange with its own initial coin offering (ICO), according to a news report.

AccessTimeIconOct 9, 2017 at 3:00 p.m. UTC
Updated Sep 13, 2021 at 7:01 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Retail giant Overstock.com is to launch its new regulated token exchange with its own initial coin offering (ICO), according to a news report.

The token sale will be the inaugural event for the new exchange, which is set to be the first marketplace specifically for trading tokens classed as securities in the U.S. The service is being launched under the umbrella of Overstock's capital markets arm, tØ.

The fund-raising effort will see the creation and sale of a tØ-specific token, which users must buy in order to pay for future services.

Overstock CEO Patrick Byrne told International Business Times (IBT) that it will be distinct from other tokens on the exchange, being a so-called utility coin and not a security.

The company expects to raise $200 million to $500 million "easily" via the ICO, Byrne said.

A joint venture with RenGen and Argon Group, the upcoming exchange will be an alternative trading system (ATS) compliant with the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations.

Originally launched for the trading of blockchain-based stocks, tØ moved to create the regulated token exchange in response to the recent growth of the ICO use case.

As tØ is already SEC regulated, Byrne told IBT that building the new service was a natural process, stating: "We took something that was already legit and legal, and we just adapted it so it could handle blockchain."

He added:

"If there's one company that could legitimately issue a token it should be us."

The platform is expected to launch along with the new token "before Thanksgiving," IBT reports.

Confetti image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.