Patrick Byrne’s t0 (t-zero) blockchain securities platform is launching its own token on 8th November, in what he’s predicting “will be the largest ICO ever.” t-zero, he promised, is going to disrupt the securities industry by grabbing its most valuable participants — institutional investors.
Byrne spoke at Money20/20 USA in Las Vegas Tuesday, in a talk titled “Bringing Liquidity to the ICO Market: t-zero’s Wall Street Licensed Crypto Token Exchange”.
Patrick Byrne has been a headliner on the Bitcoin and blockchain scene for years. Originally press-ganged into accepting bitcoin as payment on his e-commerce giant Overstock, he instantly became a convert. The outspoken libertarian has been working on blockchain equities solutions ever since — t0 issued the world’s first blockchain-based security in 2016.
Byrne: ICOs With the SEC’s Blessing
t-zero’s new securities trading platform will finally bring liquidity to blockchain securities, and do it with the SEC’s blessing, Byrne said.
The new platform will launch on 8th November. There will be an ICO pre-sale of “SAFT” tokens starting 15th November and ending 31st December, which Byrne says is going to be the biggest the world’s ever seen.
He spoke of billions of dollars in investment capital waiting to jump onto the blockchain. There are up to 500 million tokens t0 could potentially list, and it has over 8,000 users (all Reg. D accredited U.S. investors only).
A ‘Pension Tsunami’ and t0’s Digital Locate Receipt Platform
Blockchain equities trading could prevent the kind of fraud and insane circle of debts and ownership that sparked the global financial crisis a decade ago. At least, that’s Byrne’s hope.
“You may have heard of short-selling,” he said. Amid frenetic selling activity there are more shares changing hands than actually exist. We have to fix fraud on the settlement layer, he said, referring to comments by Alan Greenspan in October 2008.
How big is this “securities lending”? It’s 75 percent of the revenue of Goldman Sachs’ prime brokerage, he said. That’s a problem under the traditional financial model, and potentially lucrative for t-zero.
There’s also a “pension tsunami” heading towards the U.S. which will be the first trillion-dollar lawsuit, he added.
Guess what? Byrne said. t0 has the solution — reduce the role of the prime broker. t0’s platform features “digital locate receipts” that ensures money returns to rightful owners, and investors like pension funds.
Are ICOs Securities?
In July, the SEC issued an advisory calling out some digital tokens as securities. Many tokens sold in ICOs would indeed count as securities and would need to be registered with the SEC, it pointed out.
And that’s what Byrne and t-zero are trying to achieve. Already it’s the only exchange in the world that can trade officially SEC-registered digital tokens, he said.
Right now it’s the only SEC-compliant blockchain equities platform in existence. Byrne is planning to leverage that as much as possible, seemingly happy to take Goldman Sachs’ customers along with its money.
What do you think of Patrick Byrne’s project? Let’s hear your thoughts.
Images via Jon Southurst, t-zero