Overstock’s tZERO Secures U.S. Patent For ‘Crypto Integration Platform’


Overstock’s tZERO, a platform that offers security token trading services, has won a crypto-related patent that outlines how it intends to merge legacy and cryptocurrency trading systems.

Per a filing publication by the U.S. Patent and Trademark Office, tZERO’s patent outlines a “Crypto Integration Platform” that it says can combine market information from various sources. Such proficiency, the patent notes, helps to determine the best prices.

Accordingly, the system then proceeds to secure the digital transactional items before it completes the transaction. Transactional items include the funds for a buy order and digital assets, cryptocurrencies, commodities, tokens or cash.

Additionally, the company’s patent document describes a system that will have the capacity to cryptographically sign transactional items before matching the orders.

Part of the document explains the system as “an interface between legacy trading systems and crypto exchanges” and adds that as it works:

“…the Crypto Integration Platform takes a protocol for trading and communication between broker-dealers, Alternative Trading Systems (“ATS”), and exchanges…”

The system then “transforms the message so that the trade can be consummated using cryptographic techniques.

The technology described in the patent is said to be able to verify ownership for virtually any item. It also ensures that only those items available for trading are exchanged.

IPOs on the platform

The Overstock portfolio company has also noted in its filing that the new platform will enable users to launch initial public offerings (IPOs). Also noteworthy is that users leverage the platform to release public securities offerings and as a tool for trading in securities on secondary markets.

In all these possibilities, the most notable feature remains the capability to integrate cryptocurrency trading systems with traditional trading systems in the market.

For instance, the document explains that there are several processes built into the system that will help it achieve various possibilities.

It will, among other things, allow users to submit their digital asset orders through a legacy system, as well as ensure that trading orders keyed into legacy systems get authorization from the right entity.

Furthermore, the integrated platform will ensure that the process of matching cryptographic transactions takes into account the use of correct private and public keys.

Another important take from the patent document is that tZERO may need”special-purpose hardware” as it looks to introduce its new features.

The market should expect to see this and many more blockchain products from Overstock as it focuses on blockchain technology. The integrated trading platform is scheduled to launch within the next few months.

Despite tZERO not being officially launched, the startup is already working a number of blockchain initiatives. For example, GSR Capital, a U.S.-based private equity firm, successfully contracted the Overstock subsidiary for a security token for trading cobalt.

Overstock’s foray into cryptocurrency goes back to 2014 when it became one of the very first companies to accept bitcoin payments.

And last week, the Wall Street retail giant announced that it would become the first firm in the U.S. to pay its taxes using bitcoin in Ohio.

Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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