Security token platform tZERO is moving ahead with broker-dealer plan, may raise external funds in the next year

tZERO, the security token platform owned by online retailer Overstock, released today a review letter that summarizes its business performance over the past year and its plans for 2020.

The review, penned by tZERO CEO Saum Noursalehi, focused on various elements, including a planned launch for a broker-dealer – dubbed tZERO Markets – "in the first half of this year."

Meanwhile, the firm also announced that it could seek additional funding from external sources in late 2020 or early 2021. Launched in Jan. 2019, tZERO received $5 million in funding from GSR Capital in May, missing its fundraising target by 98.7%.

"As Overstock management mentioned recently, it is committed to funding tZERO. As our business continues to develop in the first half of the year and we continue to hit milestones and prove out the business model further, it may become appropriate to approach external sources of capital in late 2020 or 2021," Noursalehi wrote. "We would only do this, however, in a manner that enhances our business and stakeholder value."

tZERO aimed to list five security tokens on its exchange, tZERO ATS, in 2019. However, legal and regulatory concerns delayed such a process, according to Noursalehi.

Currently, tZERO has two tokens listed on the exchange and one broker-dealer, Dinosaur Financial.

"Much of our focus last year was on building. We allocated our capital, both human and financial, on acquiring the necessary regulatory approvals (which is on-going), developing our trading/digital securities technology, and building the leadership team necessary to advance our company vision," said Noursalehi.

The firm expects to list its third security token "in the coming weeks" and onboard five additional broker-dealers, according to Noursalehi.