The design draws a premise from the fact that “recent increasing adoption of cryptocurrencies (e.g., Bitcoin) worldwide creates challenges for existing trading systems”. The integration involves a complex but precise process of communication between blockchain technology and the existing traditional market infrastructures involving the exchange of market information from different sources.
The document states: “The Crypto Integration Platform aggregates market information from the crypto exchanges and serves as a router to locate the best price in the crypto market for the digital asset or liability involved in the transaction.”
Transactions involve a wide variety of asset class making the platform a bridge between traditionally-traded asset class and digital currencies. The document further explains the composite asset structures:
“The Crypto Integration Platform receives orders to trade digital transactional items such as digital assets, liabilities, commodities, and/or currencies (e.g., digital securities, digital interests in securities, cryptocurrencies) for other digital transactional times such as digital representations of funds (e.g., tokens, cash, cash equivalents such as cryptocurrencies) on a cryptographic (“crypto”) exchange (i.e., an exchange that trades digital transactional items) from broker-dealers and translates the orders into crypto orders.”
One of the express quality of the system is the cryptographic signature of transactions before and after executing those orders. This “ensures authentication, authorization, and provenance”, according to the document.
More so, the cross-linking of legacy trading systems and cryptocurrency exchanges allows a wide pool of participating companies to access capital, while investors and traders can also access shares from the former.
The tZERO patent describes the benefit of the system as one that accords “guaranteed settlement, transparency of ownership and easy money movement, and secure settlements”.
The Alternate Trading System (ATS) for securities by tZERO has gained momentum since its debut, and it has pooled interest from high-profile investment firms, raising what may seem to be largest recorded investment for blockchain startup so far. On the mothership, Overstock announced that it is first to pay tax in Ohio using Bitcoin.
Efforts from this company continue to close the gap between virtual cryptocurrencies and mass mainstream adoption. Other agents driving similar objectives include derivative markets to be launched by Bakkt, ErisX, and other proposed products from the Japanese jurisdiction.
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