Overstock Offers Tokenized Shares & SeedInvest Acquires an ATS License

4 May 2019

Each week we share the latest news in blockchain and finance. This is newsletter #34— subscribe here to get it in your inbox every Thursday.


As according to a letter shared in the Security Token Group on Telegram, Overstock is asking its shareholders to agree to receive new Series A-1 shares that will substitute their current shares but offer the same rights and will be tradeable on the tZero security token exchange.

tZero is a subsidiary of Overstock; but still, this is a big deal. As far as we’re aware, it’s the first time such a large company (with a revenue of >$1.7b) is ‘tokenizing’ (a part of) its shares.

QUOTE

You see, Société Générale’s $112 million bond issue used smart contracts built not on a private, permissioned blockchain but on the public, permissionless ethereum blockchain.

This was a baby step, for sure. But, let’s remember that this French bank belongs to an industry whose member institutions repeatedly posit that permissionless blockchains are unworkable for them.

— CoinDesk’s advisory board chairman Michael J. Casey on Coindesk.

NEWS

📄 SeedInvest, which was acquired by Circle just two months ago, has received an Alternative Trading System license from FINRAallowing it to operate a secondary market for equities issued on its platform.

💰 This is cool. Serbia-based startup Decenter launched CDP Savera dashboard that allows you to oversee all your different Maker-based Collateralized Debt Positions and interact with them.

⛓️ Tata Consultancy Services completed a blockchain-based securities settlement between two central securities depositories (CSDs)those of Kuwait and Morocco.

LONGER READS

📃 Ever prolific writer Jesus Rodriguez discusses security token standards, and the need or non-need for standardization.

🔓 How decentralized is decentralized finance (DeFi)? Kyle Kistner from decentralized margin lending protocol b0x classifies different DeFi lending protocols.

🆕 Opium Protocol is protocol for tokenized exchange-traded products. In this articlethe company explains its new proposal for the ERC-721o token standard for tokenized derivatives.

📺 Not really a ‘read’, but the Crypto Investment Summit (CIS) which took place in LA last month just uploaded hours of video on their YouTube channel. From the state of digital securities to tokenized assets, there’s enough interesting panel discussions to watch over the weekend.

NEW DEALS

⚕️ Neuronytics is issuing a revenue-sharing token to raise up to $35mfor a blockchain-based marketplace for neurobiomarker data.

🇨🇭 New Swiss tokenization platform BlockState is planning both its own STO and an STO for its first clientHip-Hop music and event promoter Streetlife International.

POSTSCRIPT

We like the question Kyle Kistner asked in his article above: What makes a decentralized protocol decentralized?

But perhaps even more important is the question: what is the benefit of decentralization? A lot has been written about this (e.g. this article by a16z partner Chris Dixon), but it is a question that we should keep asking ourselves.

Because decentralization (in for instance DeFi) is becoming a buzzword, not unlike the word blockchain. And while there are clear benefits and use cases, we should also keep in mind that decentralization is a continuum;

And that we should only strive for more decentralization when this is associated with more benefits than costs.

See you next week! 👋

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