Overstock.com, the online retailer currently developing decentralized stock market Medici, has outlined how it might issue digital securities in a new Securities and Exchange Commission (SEC) filing.
Submitted on 24th April, the S-3 form outlines Overstock’s intention to issue new stocks or securities. The offerings, according to the company, could amount to as much as $500m.
The filing also details how Overstock may seek to issue digital securities through an alternative trading system. Under a section entitled ‘Risks Applicable to Digital Securities Offerings’, the company states:
“We may decide to offer securities as digital securities, meaning the securities will be uncertificated securities, the ownership and transfer of which are recorded on a cryptographically-secured distributed ledger system using technology similar to (or the same as) the distributed ledger technology used for trading digital currencies.”
The prospectus goes on to identify how the digital securities would differ from traditional securities, highlighting that settlement periods would be much shorter. In terms of risk, the company also acknowledges the “novel and untested” nature of the concept.
Overstock director of communications Judd Bagley suggested the filing fits into the company’s broader plans to use the technology underlying bitcoin to power a new