Overstock.com could start first Blockchain-based stock trades

Overstock.com could start first Blockchain-based stock trades

Overstock.com recently stated about the creation of new platform for commerce equities based on blockchain technology known as T0. Judd Bagley, the communications director of Overstock.com, describe in detail the advantages of new blockchain-based platform in comparison with traditional equities trading systems at the recent Money 20/20 conference in Las Vegas. Moreover, Judd Bagley stated that the company would begin selling its stock on the new T0 platform.


Judd Bagley said:

“We’re from Utah. We don’t care. We’re extremely taking a burn it down and begin over approach.”

After that, Bagley processed that for regulative reasons, T0 can’t be known as a stock exchange. It is, he noted, a new blockchain-based platform for commercialism widgets, and the first use case are equities.

Bagley didn’t say that stock trading would begin on T0. All he it onstage was that T0 would be operating it slow this year, and pointed to a forthcoming Tuesday morning announcement by Overstock.com.

However, it appears quite doubtless that being operating means that trading stock, which it might doubtless begin with the stock of buy in.com itself, that started accretive Bitcoin as a payment technique a few of years ago and has received SEC approval to sell stock for Bitcoin via T0.

Overstock.com’s beef with current equities trading processes occurred some years ago, once the corporate was on the receiving finish of some exchange manipulation. Investigating the matter, it found that the difficulty came partly thanks to the complexness of sinking trades. This can be a fancy method that involves several intermediaries and is aimed at ensuring that the dealings is legitimate. However, the complexness introduces vulnerabilities and conjointly means trades aren’t absolutely settled for 3 days. However, new blockchain-based equities transactions will complete in ten minutes.


Yolanda Goettsch, an associate general counsel at NASDAQ, noted that the panel, inform to the acute speed of the exchange’s electronic commerce system. However, she did appear to acknowledge the three-day span needed for full settlement, once it’s necessary to validate that the parties to a dealings have the funds, have the rights to the stock, and are meeting regulative needs.

Nevertheless, all of the panelists agreed on one issue that Banks and exchanges will, and should use new blockchain technology.

Jacob Farber, general counsel for R3 said:

“Everybody’s in active trials. There’s an assumption currently that it’ll be deployed. The question is however and once.”

R3 may be a syndicate of seventy-five monetary establishments and is building an open-source platform for distributed ledgers, known as Corda. NASDAQ is testing a blockchain-based proxy legal system in Republic of Estonia, the country popular by its openness to new financial technologies.


The panel reflects a broader trend. There’s strong interest in new blockchain technologies in the monetary services trade, in step with a recent study by IBM, that found that fifteen percent of international banks plan to make its own blockchain products in 2017 and sixty five percent are designing blockchain merchandise within 3 years.

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