Security token trading platform tZERO, a portfolio company of digital retailer Overstock, has begun the process of allowing investors to access tokens bought during a sale it completed last August.
In a letter sent to investors late Thursday, tZERO CEO Saum Noursalehi outlined the first steps toward taking custody of the tZERO security tokens. TZERO wrapped up the $134 million offering in August, and in October said that it had completed the issuance of the tokens, which were then locked up in a custodial wallet until January 10, as outlined in a press statement at the time.
“As you are aware, on October 12, 2018 we completed the issuance of the tZERO security tokens. The tokens have been locked up in wallets maintained by tZERO on behalf of our token holders for 90 days following the issuance,” Noursalehi wrote. “Now that the three-month lock-up period has concluded, you must decide where to hold your security tokens.”
According to the letter, investors now have two options: create a brokerage account with broker-dealer and tZERO partner Dinosaur Financial Group or hold the tokens in a personal wallet, which is subject to a two-step verification process, according to tZERO.
“If you initially choose to hold your security tokens in your personal wallet, you may later move your tokens into a digital securities brokerage account you open up with Dinosaur,” the firm said.
What isn’t clear at this time is exactly when tZERO is expected to begin actual trading of the security token on its platform. In the letter, tZERO told investors to “look out for another tZERO update regarding the commencement of security token trading.”
Jonathan Johnson, the president of Medici Ventures – which oversees Overstock’s blockchain efforts, including tZERO – told CoinDesk last month that the security token platform will officially go live in January. A prototype of it was unveiled last April.
Newton’s cradle image via Shutterstock