Online retail group Overstock has filed for a stock registration with the U.S. Securities and Exchange Commission (SEC) in connection with its blockchain-powered digital preferred stock, in a move which the firm hopes will result in the approval of the regulator.
The firm’s newly installed CEO, Jonathan Johnson, said the company was taking initial steps towards obtaining regulatory approval for the registration: “This filing represents an initial step in the company’s registration of the OSTKO dividend, and the company is engaged in active discussions with regulatory authorities to obtain approval of the registration.”
The Series A-1 preferred digital stock is to be awarded to common shareholders in a ratio of 1 unit for every 10 shares, which will allow holders to transfer their shareholdings on the blockchain.
According to Johnson, the model will help introduce a number of investors to blockchain tech for the first time, in the context of enhancing “the investor experience.”
This dividend will be a great introduction for many to how blockchain technology can enhance the investor experience.
In order to receive the new tokens, investors will be required to set up an account with Dinosaur Financial Group in order to trade on the PRO Securities trading system, a platform developed by Overstock’s blockchain arm, tZero.
It comes at a time of a fundamental shift in Overstock’s business towards blockchain, following disappointing results in its core retail business in recent months. Long regarded as a pioneer of blockchain and cryptocurrency technologies, the approval of the regulator would give Overstock’s stock the all-important seal of approval, essential in attracting serious investors to the instrument.
The SEC will now consider the application in due course before deciding whether or not to give the green light to the proposals.
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