Overstock.com's tZERO subsidiary has been hired by private equity firm GSR Capital to develop a token for trading cobalt.
It has also delayed the closing of Hong Kong-based GSR's separate, previously announced agreement to invest up to $404 million in Overstock and tZERO. That transaction was set to close on December 15, but the day before, "GSR contacted us and asked for an extension to allow a key partner in the cobalt initiative from outside of China to participate in the deal," Overstock CEO Patrick M. Byrne wrote in a letter to shareholders Monday.
According to tZERO and GSR, the token will be compliant with regulatory requirements and will simplify identifying, purchasing and tracking the supply of cobalt.
tZERO will provide its expertise to "Build an ecosystem in Asia for tokenized commodity purchase contracts," Overstock said in a separate press release.
In the long term, Overstock and GSR said their collaboration could lead to the development of a security token trading platform like tZERO in Hong Kong.
"GSR and our partner will be doing more than just cobalt tokenization, and we see further growth in our partnership with tZERO including consummating an investment directly by next quarter," GSR Capital's chairman and founder, Sonny Wu, said in the press release.
Cobalt trade has been a controversial subject over the last few years, as while the mineral powers innovative industries like electric car production, more than a half of its world supply comes from the Democratic Republic of Congo, infamous for using child labor in cobalt mines.
China has been remarkably active buying cobalt producers and took a lot of blame for funding unsafe ways of production.
Overstock is planning to sell its flagship e-commerce business by February to raise cash for Medici Ventures, the umbrella for tZERO and the company's other blockchain investments.
tZERO is expected to launch early next year, with its own token as a primary trading asset.
Overstock's tZERO to Develop a Cobalt-Backed Token for Hong Kong Investor
Publicado en Dec 17, 2018
by Coindesk | Publicado en Coinage
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