Wall Street’s security token trading platform tZERO announced in late May that it achieved record volumes in digital securities trading during the month thanks to an increase in users.
The digital securities trading platform revealed that it achieved its highest token trading volume in May with about 423,000 digital securities traded during the month. The digital securities trading platform is known as the tZERO ATS. This is an alternative trading system that trades digital securities. The increase in trading volume particularly came after tZERO’s parent company Overstock rolled out its digital dividends. The company distributed one ‘OSTKO’ security token for every 10 Overstock shares purchased by investors. Trading volume on tZERO increased by a factor of four in May 2020 compared to May 2019 and the year-to-date performance indicated 50% volume growth.
“Having significantly enhanced the liquidity on our platform, we are positioned to offer issuers and investors the best trading experience for tokenized securities,” stated tZERO’s CEO, Saum Noursalehi.
tZERO experienced a 15% increase in users on its cryptocurrency app which also has a crypto wallet where users can store their cryptocurrencies. The wallet supports a variety of digital assets including Ravencoin (RVN), Ethereum (ETH), and Bitcoin (BTC) among others.
tZero’s airdrop may have contributed to the increased trading volume
tZERO believes that the impressive growth in trading volumes may have been boosted by the airdrop as per the digital dividend issuance. The company’s former CEO Patrick Byrne insisted that an airdrop would contribute to higher volumes and it looks like his forecast was spot on. The company recently released data that revealed that the security tokens it issued cover 95% of all the security tokens trading volume and 71% of their market capitalization. This means that Tzero has been dominating the security tokens market.
The volumes growth report also comes amid concerns that users cannot trade OSTKO shares anywhere else other than on the tZERO platform. This has allowed the security tokens platform to enjoy exclusivity. The platform’s growth is also attributed to increased user trust since it is a Wall Street-based firm. The security tokens exchange platform is on the right path for which it was created, which is to enable Wall Street to leverage blockchain technology to achieve more efficiency, transparency, and accessibility.