The unannounced investment will result in ICE becoming a large minority stakeholder in tZero, and it is just another indicator that the gap between stocks and crypto-assets is shrinking.
The Intercontinental Exchange (ICE) has made a strategic investment in tZero, a private digital securities marketplace, and cryptocurrency asset liquidity platform.
The announcement was made on February 22 by ICE, which owns and manages 12 worldwide exchanges, including the New York Stock Exchange (NYSE). There was no mention of the terms or specifics of the transaction other than ICE becoming a “major minority shareholder” in tZero.
As part of the investment, ICE’s Chief Strategy Officer David Goone will join tZero as its new CEO and serve on directors.
Companies can list tokenized versions of their equities on tZero’s blockchain-based alternative trading system (ATS). The company is completely regulated by the Securities and Exchange Commission (SEC) and operates as a broker-dealer in the digital asset area, as well as selling a variety of cryptocurrencies. Currently, the platform only provides a few tokenized equities, one of which is early investor Overstock, which trades under the ticker OSTKO.
The platform’s target market consists of financial institutions and investors looking for access to a digital marketplace and unique private assets and equities such as cryptocurrencies and nonfungible tokens (NFTs).
Jeff Sprecher, ICE’s founder, Chairman, and CEO commented on Goone’s appointment, saying that he has been a steward of our problem-solving culture, before adding that David’s leadership and mastery of trading, data, and clearing technology will be a big asset as tZERO begins its next chapter leading the growth and adoption of next-generation market infrastructure.
Goone, who has been with ICE since 2001, brings a wealth of expertise to the table, having developed and overseen several of the company’s product lines.
ICE is a Fortune 500 company that operates worldwide exchanges and clearinghouses that offer financial technology and data services across several asset classes.
Following its security token offering (STO) and multiple investments in 2020, tZero got off to a difficult start. The young security token platform was still losing money, but this additional investment might offer tZero access to new markets.
According to Cointelegraph, the NYSE has increased its interest in the digital asset industry by filing a patent application for a range of crypto and blockchain-related products and services on February 15. These include a cryptocurrency trading platform, NFTs, and Metaverse technologies such as augmented reality software.