Overstock CEO Confirms SEC Approval of Digital Securities, Will Disrupt Entire Trading System
Patrick Byrne, the CEO of online retailer Overstock, confirmed to a packed audience at Inside Bitcoins conference in San Diego that its s-3 application for issuing digital assets was approved by the Securities and Exchange Commission (SEC).
The approval gives Overstock the green light to issue such securities.
As it is blockchain-based, Overstock’s trading system unifies the trade and settlement processes, and eliminates the traditional settlement system that has inherent risks.
There is huge amounts of latent derivative risk in the system.
Our platform eliminates selttlement-based mischief.
It took the company spent the better part of a year and millions of dollars on legal work jumping over the hurdles that the SEC required.
The company sold its first cryptobond, worth $5 million, earlier this year to FNY Managed Accounts LLC, an affiliate of First New York.
Byrne indicated that the company’s efforts to roll out the blockchain technology based venture, t0, had contributed to him being unpopular with the big Wall Street banks.
Goldman Sachs – I am not going to get on their Christmas list.
Byrne noted R3’s effort to develop blockchain standards with 30 global banks was an effort to counter the blockchain technology revolution, take ownership of it or slow it down.
The Overstock CEO added:
Wall Street is running around like mad men to try and get in front of this technology.
The major banks apparently make a great deal of money through the traditional stock settlement system, which will ultimately be eliminated when blockchain technology unifies trading and settlement.