tZERO Secures $5 Million via Equity Stake Sale

Overstock’s blockchain arm tZERO announced on Tuesday that it has raised fresh $5 million with an equity investment sale to GoldenSand Capital (formerly GSR Capital), a Hong Kong-based private equity firm.

“tZERO is building the next generation capital markets platform, capable of tokenizing, trading and settling digital securities, and we are pleased to be joining them to further build this capability,” Sonny Wu, chairman at GoldenSand Capital, said.

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“We plan to continue to collaborate with tZERO on strategic opportunities and are interested in partnering our wealth of industry connections across Asia with tZERO’s tokenization protocol technology.”

A small part of a major commitment

GoldenSand Capital’s commitment to tZERO is long-standing as in 2018, the company committed to put a total of $400 million in tZERO and Overstock combined.

Then tZERO raised $134 million via a security token offering (STO), despite having an aim for $250 million.

However, the company did not mention anything about the usage of the freshly raised capital.

“GoldenSand Capital understands the value of tZERO and its mission to introduce greater efficiency and transparency to capital markets by leveraging blockchain and smart contract technology,” Saum Noursalehi, CEO of tZERO, said.

Over the years, tZERO has also expanded its business and now owns a few other platforms as well.

Earlier this year, tZERO dived into the brokerage business, launching a retail broker-dealer platform called tZERO Markets.

Alsong with BOX, tZERO also owns the Boston Security Token Exchange (BSTX), a token securitization platform. BSTX, however, is facing delays with its regulatory filings.

SpeedRoute, another tZERO subsidiary, recently revealed that the platform registered record volume for the month of March with increased volatility in the market.

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