This Tech Unlocks Wall Street’s Biggest Investments
Investing for many years was purely for stockbrokers.
Reality was not far from scenes out of the movie Trading Places with hundreds of brokers packed in like sardines constantly yelling.
And those men and women made a killing speculating on things like the price of orange juice.
But for too long, the American public was almost entirely locked out of the action.
Fees back in the ’80s were on average around $45 but could climb into the hundreds or even thousands depending on the size of the order.
Fortunately for us, the internet has put brokers in their place. And has opened up the wide world of trading to the public.
Sitting at home with just your computer, you have the ability to invest in nearly any stock out there… in any way you want to do it.
Stocks, bonds, options, you name it.
But still even to this day, there are limitations to what people can do.
If you want to invest in private companies or illiquid assets like real estate, there are major challenges you’ll face. While the regular stock market has evolved, many other industries have not.
But soon there may be sweeping changes to how we invest… and it might come from a long-forgotten technology.
A Huge Step Forward for Investing
As of last month, the company tZERO has used the blockchain technology to develop a way for a person to buy digital securities, cryptocurrency and even traditional stocks.
Its tZERO Alternative Trading System (ATS) platform is the first SEC-regulated ATS to support secondary trading of crypto securities.
And it’s owned by online retailer Overstock.com (NASDAQ: OSTK).
Transactions in tZERO in May jumped by four times. And year to date, OSTK’s stock is up over 200% — owing a lot of credit to tZERO’s recent success.
It’s a huge step forward for blockchain technology and trading as a whole.
But what does it mean for you?
Well first, having the SEC regulate the trading system allows tZERO to potentially provide services not available at other platforms.
But the biggest potential I see here is the ability for tZERO to fully advise companies on how to raise money on their platform through the use of tokens.
A token for a company represents an alternative method for companies to raise capital. Investors can buy and sell tokens just like they would stock.
And because tZERO’s platform is SEC regulated, they have to abide by all the rules any other trading platform does.
That means no pump-and-dump schemes like we’ve seen in some of the altcoins. No Chinese investors blowing up the price off hours. And no insider trading by CEOs who know the news before it breaks.
There’s a lot of potential here beyond just an alternative method of buying stocks.
TZERO’s platform has the ability to tokenize nearly anything that might be traded. That means not only public and private stocks but also items that may have a hard time finding buyers.
Real estate… fine art…
Heck, even your stamp collection if it’s worth enough has the chance to get tokenized.
The point being, tZERO has developed a platform that allows people to invest in products they would have been otherwise locked out of.
Previously, if a company wanted to create tokens to raise funds, it would have needed to develop its own platform and have required a large amount of expertise and investment.
TZERO provides that service to these companies with the prowess of SEC regulation to boot.
There’s a lot of potential here, and it’s still in its beginning stages at the moment…
But finally, after years of waiting, there’s hope for blockchain technology.
I’d like to hear your thoughts on the matter. Do you think tZERO will survive? Or will they fail like plenty of others in the past…
To a bright future,