SEC Approves Plan to Issue Stock Via Bitcoin's Blockchain
Joyce Park stashed this in Economics
Stashed in: Bitcoin
Could be a gamechanger. Amazing that it's Overstock.com -- the place where I buy my off-label giraffe-print flannel sheets -- that is leading this charge.
I guess it's no stranger than Amaxon investing heavily in Amazon Web Services.
Over the past year, Overstock and its freethinking CEO, Patrick Byrne, have developed technology for issuing financial securities by way of the blockchain, the vast online ledger underpinning the bitcoin digital currency. The blockchain is essentially an enormous database that runs across a global network of independent computers. With bitcoin, this ledger tracks the exchange of money. But it can also track the exchange of anything else that holds value, including stocks, bonds, and other financial securities. Overstock has already used the blockchain to issue private bonds, which did not require explicit regulatory approval. Now, the SEC has told the company it can issue public securities in much the same way.