tZERO, a blockchain platform for capital markets and subsidiary of Overstock.com, announced Friday that it has secured a letter of intent from GSR Capital (GSR), a private equity firm organized in Hong Kong, to purchase $160 million in tZERO Security Tokens.
"tZERO announced the signing of a letter of intent (LOI) with GSR Capital (GSR), a private equity firm organized under the laws of Hong Kong, to participate in tZERO’s Security Token Offering (STO)."https://t.co/RftnltTvgO
— tZERO (@tzeroblockchain) June 29, 2018
According to the announcement, GSR will be making the purchase at $10 per token, pursuant to the Simple Agreement for Future Equity (SAFE). The STO, which has already raised $95 million from over 1,000 investors in 30 countries, will be extended to August 6 to accommodate GSR.
In an accompanying statement, tZERO CEO Saum Noursalehi shared that the addition of GSR brings an element of validation to the company’s strategy.
We are overwhelmed by the support we have received from all of our investors, and thrilled to have GSR on our team as we seek to launch the world’s first security token exchange. This investment from GSR further validates tZERO’s strategy to introduce blockchain to capital markets, and this partnership will accelerate our global expansion efforts.
tZERO plans to contribute a portion of the capital raised in its STO and license its blockchain technology for operation of the security token market while BOX will contribute personnel and expertise toward obtaining regulatory approval and operation of the security token market.
Unlike utility tokens, which make up the majority of tokens and are defined simply as something that gives access to the company’s services, security tokens are designed to be tradable assets and are issued to investors in the pursuit of future profits. Naturally, this token class brings an extra layer of required regulatory approval, making them largely unavailable to retail investors.