GSR Capital Closes Investment with Overstock’s Security Token Platform

Asia Blockchain Review
May 27, 2019

Hong Kong-based GSR Capital has officially closed on its investment in’s security token trading platform, tZERO, following months of delays as the deal underwent multiple revisions.

However, rather than buying US$30 million of tZERO tokens as previously agreed, the private equity fund invested just US$5 million in tZERO equity in the traditional form. As reported by CoinDesk, the finalized transaction valued the platform at US$1 billion, or half a billion less than in the initial agreement.

Overstock also said Makara Capital, a Singapore fund brought by GSR into the deal, is still conducting its due diligence of tZERO, and may still invest the money it pledged earlier.

Saum Noursalehi, CEO of tZERO, described the US$5 million investment as a “decent offer,” while Overstock stated that it consisted of US$1 million in U.S. dollars, US$1 million in Chinese Renminbi, and US$3 million in “certain securities.”

Originally, the deal with GSR was expected to bring US$404 million to tZERO, but was postponed several times and downsized to US$100 million in March 2019, and then to US$30 million the following month.

Given that tZERO did not obtain as much outside investment as it had initially hoped, it will instead rely on cash from Overstock for the time being, with earlier plans to sell the retail business postponed as well.

Still, tZERO appears to have found a major client with Dubai-based real estate giant Emaar, which has signed a letter of intent to issue tokens on tZERO.

Overstock is also planning to issue more tokenized shares in the long term, with the company possibly going full blockchain, according to Noursalehi.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
China Races to Roll Out National Digital Currency
Following Facebook’s announcement of Project Libra, China has been more determined than ever to intr...

September 23, 2019

Crypto Exchange Hires Singapore Monetary Authority Veteran as Compliance Chief
iSTOX, a digital securities issuer and crypto exchange, announced that it has hired a 15-year vetera...

September 23, 2019

Isle of Man Issues First Token-Based Supplier License
Blockchain gambling platform FunFair has become the first company to be approved for a token-based s...

September 23, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us