This week, tZERO announced the completion of a succesful private funding round. According to company executives, the Hong Kong-based private equity firm, GoldenSand Capital was the only participant in this multimillion-dollar funding series. The news showcases increased STO interest by Asian financial firms, as well as, tZERO’s desire to play a more prominent role in the Asian market.
According to reports, the private equity sale netted tZERO $5 million. Importantly, the funding will go towards a multifaceted approach to the market. In a recent interview, tZERO CEO, Saum Noursalehi gave more insight into how the group intends to use the funds. Specifically, Noursalehi listed the firm’s three main priorities at the moment. First, tZERO wants to expand asset trading. Adding more assets to the tZERO platform provides investors with more options.
Additionally, the addition of funds will provide much-needed liquidity in the space. Most importantly, there will be more liquidity on tZERO’s ATS ( Alternative Trading System). Lastly, developers want to make drastic improvements to both the web and mobile platforms. This strategy makes sense because it will enable faster onboarding of new investors, and give these new users new tokens to trade.
Pleased to Join the Team
Speaking publicly, Sonny Wu, chairman of GoldenSand Capital described the feelings surrounding the strategic partnership. He explained that his team was “pleased” to be a part of the tZERO movement. Wu called tZERO a “next-generation capital markets platform” before discussing the advantages it brings to the market. He also touched on the benefits of tokenizing, trading, and settling digital securities.
Notably, Wu spoke on the strategy to collaborate with tZERO on regional opportunities. Specifically, he described how GoldenSand can leverage its well-established network in the region to help increase tZERO adoption. This maneuver would help tZERO retain its spot as the top security token exchange globally in terms of market cap.
Outside the US
tZERO’s pivot towards Asia comes after delays to its US security token exchange launch. Critically, the SEC pumped the breaks on the joint venture with BOX Digital, dubbed the Boston Security Token Exchange (BSTX). At that time, regulators requested more time to research the project. The delay signaled continued reluctance on the part of US regulators to approve blockchain-based securities exchanges.
tZERO entered the market in 2017 with the goal to offer blockchain-based fintech solutions for capital markets. Importantly, the group is a subsidiary of the online e-commerce giant Overstock.com. The former Overstock CEO, Patrick M. Byrne is the founder of the firm. In August 2018, tZERO secured $134 million via an STO.
Asian Security Token Market Continues to Develop
The decision to focus more on the Asian STO market makes a lot of sense when you consider the recent legislative changes occurring this month. Both Japan and Singapore have introduced new blockchain regulations. These new frameworks are seen as a positive development in the market because it provides traditional investment firms the security they require to participate in the market. Consequently, the Asian tokenized securities market is set for a major expansion in the coming months.
tZERO Seeks the Top Spot
It’s not a stretch of the imagination to see tZERO continue to dominate the sector. The group’s network continues to expand, and with new pro-crypto regulations, STOs may finally get the respect they deserve in the market. For now, you got to commend this team on always being ahead of the curve.