Quick Intake
Dividend Paid on Shares via Blockchain.
A company, Overstock OSTKk.com had completed the issuance of its Digital Voting Series A-1 Preferred Stock (“Series A-1”) (OSTKO) digital dividend on May 19, 2020, via Blockchain
The said company shares are traded only on TZero’s Alternate Trading System (ATS) which is a blockchain-based Stock exchange platform
Interestingly, the Dividend is paid to the shareholders holding the shares in form of Tokens and the same is credited to their accounts directly.
Happy Reading…
Overstoc OSTKk.com said today that it had completed the issuance of its Digital Voting Series A-1 Preferred Stock (“Series A-1”) (OSTKO) digital dividend on May 19, 2020, as expected. This was a first for blockchain-inspired trading because OSTKO will controversially trade only on tZERO’s Alternative Trading System (ATS) and not multiple exchanges.
OSTKO will also be measured on tZEROS’s blockchain platform. This means that existing systems will be used simultaneously with tZERO’s ATS token trading innovation. This dividend is a blockchain first for tracking share ownership.
“I’m pleased we have paid this innovative dividend to our shareholders,” said Overstock CEO Jonathan Johnson. “These preferred shares have real value and have been paid a cash dividend in each of the last three years. We believe they will increase participation and long-term liquidity on the tZERO ATS platform. I appreciate the support and cooperation of the investment community and regulators in our efforts to innovate in the capital markets through new technology.”
Skeptics have expressed concern over the inability to trade the shares on exchanges other than the Overstock-owned tZERO exchange.
In a statement the company said the dividend was issued in Series A-1 shares on a 1:10 basis to all Overstock shareholders as of the record date of April 27, 2020. Overstock then distributed the dividend shares through its transfer agent, Computershare, to investors’ brokerage or other custodial accounts in which they hold Overstock securities. No action by shareholders was necessary for them to receive the dividend.
