The tZERO Group is to develop a blockchain solution for cobalt trading on behalf of Chinese GSR Capital. The overstock subsidiary tZERO and the investment company GSR want to create an ecosystem for tokenized raw materials in Asia.
Cobalt gets on the blockchain – at least when it comes to the overstock subsidiary tZERO. On behalf of the Chinese investment company GSR Capital, tZERO is to work on a smart contract solution that enables the trading of tokenized assets. Cobalt will be the first asset to be issued by Smart Contract. In addition, the two companies plan to create an ecosystem for tokenized commodity trading in Asia. In addition, they are flirting with the establishment of a platform for security tokens – the hobbyhorse of tZERO.
Beside tZERO and GSR there will be another Bitcoin formula partner, not named by name:
“To add another important Bitcoin formula partner to this project, the companies will extend the deadline for completing their previously announced capital investment to February 28, 2019, is the message of a joint company press release published on 17 December.
Overstock CEO, tZERO CEO and Blockchain enthusiast Patrick M. Byrne sees Blockchain technology as the future for commodity trading:
“Smart contract automation of these transactions will significantly reduce overall costs and at the same time effectively improve transparency in the procurement of rare earth metals along the entire supply chain. We look forward to bringing the future of raw material sourcing to the global market.”
Blockchain bull Byrne
Only in November Byrne had told the Wall Street Journal that Overstock wanted to rely completely on Blockchain in the future. The company wants to give up retail business completely in the coming year – probably also because the competition in the form of Amazon is too far superior. With Medici, Overstock has a venture capital subsidiary that makes targeted investments in the DLT sector. So far with little success: In 2017, Medici generated a loss of 22 million US dollars. The first nine months of this year were even worse for Medici with a loss of 39 million US dollars.
Nevertheless, Byrne remains as committed to the strategy as he is to his belief in blockchain technology. Byrne thinks long-term and is not upset by Medicis’ current losses.