Overstock’s security token trading platform subsidiary tZERO has been awarded a patent for a “crypto integration platform.”
Published by the US Patent and Trademark Office (USPTO) last week, the patent describes a system that would act as “an interface between legacy trading systems and crypto exchanges that trade digital transactional items.” The crypto integration platform will aggregate market information from crypto exchanges and serve as a router to locate the best price in the crypto market for the digital asset or liability involved in the transaction.
“The Crypto Integration Platform takes a protocol for trading and communication between broker-dealers, Alternative Trading Systems (“ATS”), and exchanges, and transforms the message so that the trade can be consummated using cryptographic techniques,” the filing said. “The Crypto Integration Platform allows broker-dealers to integrate the technology described herein on the backend of legacy trading systems, opening up legacy trading systems to crypto exchanges.”
The platform is reportedly utilizing distributed ledgers to verify ownership and availability of the digital transactional items being exchanged. The patent claims that the platform will allow securities issuers to conduct initial public offerings (IPO) and other SEC-registered public offerings of securities, and by the general public to trade those securities in secondary market transactions.
“The Crypto Integration Platform allows more companies to enjoy access to capital and more investors to enjoy access to shares of the participating companies,” tZERO said. “The Crypto Integration Platform can receive and transform messages in protocols other than the FIX protocol to be consummated using cryptographic techniques.”
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