Overstock will develop cobalt tokenization and trading platform
Private equity firm GSR Capital has entered into an agreement with the Overstock.com division of the tZERO platform to develop a token based on a smart contract for the sale of cobalt, according to a press release.
TZERO and Hong Kong-based GRS Capital will collaborate to create an ecosystem for the purchase of tokenized commodities in Asian markets. This is expected to improve efficiency in the supply of rare metals. Also, the project participants will launch a security token platform after agreeing on the initiative with the responsible authorities..
According to the publication, the cobalt trading token will be released in 2019. It will be tied to regular tranches of a resource suitable for use in electric vehicle batteries. Cobalt worth up to $ 200 million will be put up for sale via the platform.
Overstock CEO and tZERO executive chairman Patrick Byrne said, “Automating these transactions through smart contracts will significantly reduce overall costs and provide transparency in the rare earths trading process.”.
Along with the conclusion of the latest agreement, GRS Capital is postponing the previously announced $ 404 million investment round, which it intends to invest in Overstock and tZERO. According to Overstock, GSR asked them to move the deadline so that another key partner could join the project..
“While we know this partner well, and his involvement will prove valuable to the entire ecosystem, we were as annoyed as you were that the delay was announced at the very last moment,” Byrne wrote in a letter to shareholders on Monday.
In November, Byrne announced plans to sell his business in the online commerce industry and completely reorient the company to the blockchain space..
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