Overstock, the e-retail giant, has always been optimistic and enthusiastic about digital currencies, particularly, its CEO Patrick Byrne. The latest announcement that it will utilize colored coins to issue what it calls a “digital corporate bond”, or a cryptocurrency-based security, based on the Bitcoin blockchain is another step towards the same goal.
In the announcement, the company says that the issuance forms part of its development of cryptographic security technology is aimed at reducing trade settlement friction. Additionally, as Overstock previously expressed its interest in creating a cryptotoken-based security in an April filing submitted to the US Securities and Exchange Commission (SEC), this was expected.
Nonetheless, the advocate of all the pro-Bitcoin activities at the firm is, the CEO Patrick Byrne. At the occasion he said that the cryptorevolution has arrived on Wall Street and his company is making it official by offering the world’s first cryptosecurity. He also said that the bond will be issued using its “TØ.com technology”, which was developed as part of its Medici initiative.
The announcement reads:
Overstock.com, Inc. became the first company to solicit qualified institutional buyers in a digital corporate bond which will trade using the same technology that underlies cryptocurrencies such as Bitcoin. This pioneering development is part of the company’s larger cryptofinance initiative known as Medici.
Even Byrne admitted that a cryptosecurity is one that trades on a cryptographically-protected distributed ledger. According to him buyers will be able to track their ownership on the Bitcoin blockchain. Issuing the TIGRcub bonds on the TØ.com platform proves that cryptotechnology can facilitate transparent and secure access to capital by emerging companies.
Bitcoin is reaching to New People and Businesses around the World Successfully
Byrne further elaborated that a circular informing investors of the cryptobond offering was distributed on June 1, 2015. He informs that this offering is being made exclusively to qualified institutional buyers that meet the definition of “accredited investor” in compliance with Rule 506(c) of Regulation D under the Securities Act of 1933, as amended.
Overstock has also outlined the initiative in an investor circular distributed at the beginning of this month. Some reports claim that the company is looking to raise as much as $25m. This online shopping retailer based in Salt Lake City, Utah sells a broad range of products at low prices, is playing pivotal role in popularizing Bitcoin.
To contact the reporter of this story: Deepak Tiwari at email@example.com