Overstock Uses Security Tokens on Ravencoin (RVN) Blockchain for $3.6M DLT Investment
The retail giant’s Medici Ventures subsidiary has purchased a stake in distributed ledger technology startup Chainstone Labs by using securities tokens.
Overstock, one of the largest retailers in the United States, has deepened its involvement in the blockchain industry by utilizing a digital security for its latest investment, according to a company press release on Tuesday. The securities tokens, issued on the Ravencoin (RVN) network, were used for the acquisition of $3.6 million in the equity of Boston-based distributed ledger technology startup Chainstone Labs.
Overstock struck the deal via its crypto investment subsidiary Medici Ventures. The VC division, which announced an interest to purchase a 29% stake of Chainstone Labs in the third quarter of this year, completed the acquisition by buying securities tokens for $3.6 million this week. According to Jonathan Johnson, president of Medici Ventures, Overstock decided to bet on the blockchain technology as it eliminates the need of third parties and can “democratize capital.”
“[…] blockchain is the future and using it to make transactions faster, more secure, and completely transparent will change the world,” Johnson said in the statement.
Bruce Fenton, CEO of Chainstone Labs said that securities tokens have a significant potential for the development of the blockchain industry. Fenton, along with his position at Chainstone Labs, is also part of the boards of directors of Medici Ventures, and tZero, another Overstock crypto subsidiary.
Chainstone Labs, founded in 2018, is orientated to digital securities and blockchain-powered asset management solutions.
“It is natural that since we focus on securities tokens that we have a digital security for the equity in our own company. The ease of moving digital securities has the potential to change the way the global economy works,” Fenton said.
Nearly 24 hours after the Overstock announcement, the news was continuing to affect the market performance of Ravencoin. The asset changed hands at $0.015 per coin, which was a 15.59% increase on a daily basis at 12:57 UTC on Wednesday, according to Coinmarketcap data. Around a year ago, Medici Ventures backed RVN launch.