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Overstock.com Inc (NASDAQ:OSTK) Subsidiary tZERO To Purchase 24 Percent Ownership Stake In StockCross Financial Services Inc.

Overstock.com Inc (NASDAQ:OSTK) subsidiary tZERO recently announced that it will be purchasing 24% ownership stake in the StockCross Financial Services, Inc. StockCross is a U.S. DTCC member firm as well as a FINRA member. The Overstock subsidiary’s major function is to buy, build or partner to aggregate all the necessary components in order to have end-to-end ownership of all its trading, clearing and settlement platform.

With the investment in StockCross, the company has added a key partner with the custodial and clearing functionality of a U.S. DTCC member firm to the trading ecosystem of tZERO. According to the president of tZERO, Joseph Cammarata the company views its acquisition of 24% ownership stake in StockCross and its relationship with the Gebbia family as yet another major step towards fulfilling the company’s goal of becoming the first fully regulated platform for security token trading.

Cammarata further stated that this collaboration will enable the company to unlock enormous potential and will provide tZERO with enterprise-level economies of scale for both the companies including Overstock.

tZERO To Receive 12 Million Siebert Shares

With today’s announcement, the strategic relationship between tZERO and StockCross has started. According to the transaction terms, tZERO will acquire the 24% ownership stake in StockCross for $12 million and will receive around 1.2 million shares of Siebert.

The CEO of tZERO and Overstock.com, Patrick M. Byrne said that his company’s vision is to bring the blockchain capital markets’ benefits to the world without levying large switching costs on investors participating in the current US National Market System. According to Byrne to achieve that the company is inch-by-inch combining together a blockchain capital market which they will integrate slowly into the current National Market System of the U.S.

A few days ago Overstock.com announced the launch of a digitally driven investment platform which will be powered by advisors from tZERO. The founder and CEO of Overstock stated that the company is very much excited about this new program offering the opportunity to the customers to bring artificial intelligence to their financial planning.

About the author

Adam Loreen

Loreen covers the Crypto/Blockchain sector for Investing News Center.

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