tZERO To Develop Smart Contracts For Precious Metals Supply
The private investment enterprise GSR Capital announced the collaboration with tZERO Group Inc. to implement smart contracts into the system of cobalt supplies, as reported in the official press release of Overstock.com, an online retailer owning tZERO.
The new partnership concluded in Hong Kong is aimed at creating the infrastructure of smart contracts to purchase tokenized products within the Asian region. This process is intended to improve the system of rare metals supply by making it more profitable and transparent. In addition, the partners are going to launch a security tokens platform in accordance with a regulatory framework.
Under the smart contract terms, tokens will be designed to make cobalt realization more efficient. The launch of the project is scheduled for 2019. The first-ever initiative for cobalt supply is expected to include multiple tranches of raw materials for batteries from electric vehicles. The total amount of cobalt available for realization is stated to be $200 million.
Overstock CEO Patrick Byrne said that automated smart contracts will increase the level of transparency in rare metals trading and at the same time reduce total costs.
To successfully complete the new project, GSR Capital asked the partners to postpone the investment round announced in August 2018. The companies signed an agreement according to which GRS Capital is to invest $374.55 million in exchange for companies’ common equities. In addition, GRS Capital intends to acquire Overstock security tokens for $30 million.
As previously reported, Medici Ventures, an investment subsidiary of Overstock, acquired a $2.5 million stake in the blockchain-based agricultural project GrainChain.