TZero to Digitize $25M of Equity in Oil and Gas Fund on Ethereum Blockchain
The deal should make it easier for investors to trade stakes in a fund managed by EnergyFunders.
May 20, 2021 at 5:40 p.m. UTC
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TZero, which runs a trading system for digital securities, said Thursday it has agreed to digitize $25 million of equity interest in an oil-and-gas fund managed by Houston-based EnergyFunders.
The deal will rely on tZero's smart-contracts technology, and the digital securities will be built on the Ethereum blockchain, according to a tZero press release.
It is expected that investors will be able to buy and sell digitized equity in EnergyFunders' Yield Fund I on tZero's trading system, tZero said, giving them access to returns from oil and gas projects.
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EnergyFunders CEO Laura Pommer said in the press release that she was "pleased about this potential opportunity to provide a secondary market for trading our new EnergyFunders Yield Fund I in the same way that you might trade stocks, bonds or ETFs (exchange-traded funds) in a regular brokerage account."
Founded in 2015, tZero is a unit of Medici Ventures, which is owned by online retailer Overstock. The company has worked with Vertalo, a transfer agent and manager of blockchain-based capitalization tables that recently raised $5 million in Series A funding.
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