Once a prominent exchange, tZERO supports the sale of securities, some of which are blockchain tokens.
The Overstock-owned tZERO Crypto exchange will shut operations on March 6, the business stated on Twitter on February 3. After the halt, the company claims it would continue to focus on its regulated securities products while the Securities and Exchange Commission (SEC) and other regulators establish the legal position of crypto assets.
Financial technology company tZERO is headquartered in New York. It facilitates the public issuance of securities by private companies seeking to go public. In the cryptocurrency community, tZERO is best recognized for its tokenized shares or “digital securities” that may be traded on a blockchain.
The online retailer Overstock owns around 55% of tZERO, according to a press release issued by the business on August 26.
In 2019, tZERO announced “tZERO Crypto,” a typical cryptocurrency exchange that enabled users to buy, trade, and hold Bitcoin, Ether, Litecoin, and other cryptocurrencies. However, the corporation stated in a recent notification on February 3 that this exchange would be discontinued on March 6.
In its release, tZERO hinted that unregulated cryptocurrency exchanges are on the verge of extinction by declaring, “We expect that many digital assets would be classified as securities and trade in a regulated ecosystem.” The announcement elaborated: “While the regulatory environment surrounding crypto assets is clarified by the SEC and other regulators (including in light of recent events), we will continue to focus on our unique regulated securities business, which we believe will be the trading venue for the vast majority of digital asset securities.”
The business stated that the shutdown would occur on March 6 in order to facilitate “the orderly withdrawal of assets by clients, which are still being held by the custodian.” It was not specified whether security tokens exchanged on the tZERO ATS stock exchange will also be impacted by the closure of tZERO Crypto. Cointelegraph reached out to tZERO ATS for comment but did not receive a response prior to publishing.