tZERO, the blockchain subsidiary of Overstock.com has agreed to take a 1% stake in Kennedy Cabot Acquisition Holdings (KCA).
The tZERO investment solidifies the alignment of interests in forging a path forward for Siebert Financial and KCA in both traditional and crypto brokerages. This follows last week’s announcement that tZERO and Siebert Financial have entered into an exclusive marketing agreement wherein Siebert Financial would have select access to offer deep discount, online trading to Overstock’s growing customer base of over 25 million U.S. households.
Upon closing, The tZERO $1,000,000 investment will entitle the company to 1% of the assets of Kennedy Cabot including among other valuable assets an approximate 90% stake in SIEB. This investment confirms Overstock’s Commitment to expand its product offering to all aspects of their valued customer’s lives.
Overstock CEO Patrick M. Byrne said: “There is nothing better than partnering with like-minded companies with tremendous synergies to disrupt the inefficient monolithic paradigms of Wall Street. Our investment today is a vote of confidence to Gloria Gebbia and the SIEB management team. We have a shared vision and now we look forward to being a shareholder.”
The parties announced last week that they will roll out $2.99 trades and $1.99 trades to a new class of Overstock’s Club O loyalty program. These product offerings are expected to be available in Q1 2018.
KCA CEO Gloria Gebbia said: “The KCA and Siebert teams welcome Dr. Byrne and tZERO aboard as our partner and shareholder. In keeping with Muriel Siebert’s storied history, the companies intend to continue to deliver world-class traditional brokerage, IRA and Robo Advisory products. It is exciting to team with Overstock/tZERO on connecting the Siebert infrastructure and expertise with the emerging crypto trading ecosystem. We intend to work together with tZERO at the leading edge of the crypto revolution.”
Discussion about this post