SEC approves Overstock's S-3 filing to issue new shares on Bitcoin blockchain

According to Bitcoin Magazine, multiple sources close to Overstock revealed that the U.S. Securities and Exchange Commission (SEC) has approved the S-3 application of online retailer Overstock.com (NASDAQ: OSTK) to issue the company's new listed shares on the Bitcoin blockchain.

An Overstock spokesperson declined to comment on the news, but said the company would make an official statement within the next 48 hours.

S-3 is a securities registration form that allows companies to simplify the process of issuing publicly traded securities. S-3 is different from S-1. S-3 is for companies that have already complied with the Securities Exchange Act of 1934 to a certain extent. In particular, the applicant company must have properly filed with the SEC for at least 12 months before it is eligible to submit an S-3 application.

Overstock's t0 blockchain platform has been working to put equity trading and settlement on the blockchain. The project was first announced in April 2015. In June, Overstock sold the first cryptobond on the blockchain. As a proof of concept, FNY Managed Accounts agreed to purchase the 500万美元bond.

In order to enter the financial industry, t0 platform acquired the Wall Street brokerage firm SpeedRoute for 3030万美元in August 2015.

“It’s a routing service that connects to 11 exchanges and 25 dark pools in the U.S.… We want to bring blockchain to Wall Street, but instead of building it in isolation, we want to get people to adopt it,” Overstock CEO Patrick Byrne said in an interview with the Tabb Forum.

For Overstock, issuing company shares on its platform is a viable proof of concept. Fundamentally, t0 can be described as " trading is settlement ". In the traditional stock trading market, the settlement mechanism in the market is T+3: buy on the same day, and sell three days later to cash out. The transaction of payment and securities takes three days to resolve. With blockchain, settlement can be completed instantly, and it happens at the same time as the transaction.

It is reported that the T0 platform uses the technology of colored coin coins. For example, a colored coin can be marked as a token that proves who owns Overstock shares. This technology is built on the Bitcoin blockchain and is protected by the Bitcoin distributed ledger.

Original article: https://bitcoinmagazine.com/articles/sec-approves-overstock-com-s-filing-to-issue-shares-using-bitcoin-blockchain-1449539558
By Jacob Donnelly
Compiled by: Satuoxi
Source (translation): Babbitt Information (http://www.8btc.com/sec-approves-overstock)