t0 (tzero): Pioneering Blockchain-Based Trading

t0 (tzero): Pioneering Blockchain-Based Trading

CIO VendorJonathan Johnson, President of Medici Ventures and member of tzero’s Board of Directors
Despite the rapid advancement of technology on Wall Street, the actual stock trading process still takes the same amount of time as it did when messengers and couriers were the preferred mode of data transportation. In fact, most transactions don’t settle until three days after the trade - or T+3. The money moves, but the delivery of the stock lags, leaving a dark window that has repeatedly been exploited by insiders to further personal investment agendas at the risk of destabilizing a stock, an industry, or in the case of last decade’s subprime mortgage crisis, the entire global economy.

Overstock.com, once a victim of malicious naked short-selling campaigns and a long-time champion for fair and transparent practices on Wall Street, quickly understood that the secure, decentralized and transparent nature of the blockchain provided the perfect technology to close this T+3 window by ushering in the era of same-day settlement.

In late 2016, this idea became a reality with the introduction of the tzero blockchain securities trading platform. With tzero, the trade is the settlement, and transactions are a simultaneous transfer of money and security. Even better, the entire process takes seconds – not days – hence the name tzero, or T+0. This new approach to trading currently adheres to all regulatory restrictions – it uses an alternative trading system as well as a broker-dealer as required by the SEC – however, it is also able to function independently once these regulations are updated to remain relevant to the level of the technology they are regulating.

“As we learned more about the blockchain, we realized that it could provide a transparent and secure playing field that eliminated the opportunity for cronyism and unfair trading practices,” said Jonathan Johnson, President of tzero’s parent company, Medici Ventures, and member of tzero’s Board of Directors.

A lot of start-up companies talk about blockchain technology; we’re doing more than talking, we have the technology in production

“By eliminating the delay between trade and settlement, tzero has shined a bright light on a dark area of Wall Street and ushered in a new era of Wall Street where everyone is on an even playing field.”

In a world where technology plays a crucial role in all banking transactions, regulatory compliance and security concerns often pose numerous challenges. The tzero platform eliminates delays and offers an immutable, consolidated record of all transactions. Compliance teams can download reports as spreadsheets to review and even hand over to regulatory bodies. Meanwhile, it also uses public key cryptography to deliver enhanced security measures and assuage finance organizations of security woes. Finally, tzero’s blockchain foundation not only keeps track of transactions, but also updates and refreshes them nearly instantaneously, ensuring every ledger is up-to-date.

“The beauty of the blockchain is that everyone in the company is reading from the same ledger, but any information that needs to be anonymized can be. This makes the tzero technology perfect for organizations trying to cut their compliance and other back-office spend.”

Best of all—the tzero platform is up and running, which gives tzero a competitive edge.

“A lot of start-up companies talk about blockchain technology; we’re doing more than talking, we have the technology in production,” adds Johnson. “tzero is an enterprise-level technology capable of empowering CIOs to tackle any digital trading challenge, and it’s ready for integration today.”

tzero’s trading platform is as innovative as it is transformative, and has already cemented the fintech company’s place as global a blockchain innovator.

Learn more about tzero or schedule a demo of the application at tzero.com