Overstock Will Issue a Private Bond Powered by Bitcoin Tech
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OVERSTOCK.COM IS PREPARINGÂ to offer a $25 million private bond using the blockchain, theÂ distributed online ledgerÂ that underpins the bitcoin digital currency.
Earlier this week, the online retailer circulated a document among hedge funds, private equity groups, and other potential Wall Street investors indicating it was offering such a bond. Company CEO Patrick Byrne, the circular says, â€śbelieves that cryptotechnology can do for the capital market what the internet has done for consumersâ€ťâ€”a reference to the type of technology that drives bitcoin.
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On one level, the bond is a mere curiosityâ€”a security issued in a slightly different way. But Byrne sees it as a step towards a public stock market driven by blockchain-like technologyâ€”a replacement for the types of systems that run the NASDAQ and New York stock exchanges. Overseen by cryptographic algorithms, such a market would potentially be more transparent, more reliable, and more secure that then existing system. â€śThere are all kinds of ways to rig the market,â€ť Byrne tells WIRED. â€śWe want to make it un-rig-able.â€ť