Overstock.com Inc (NASDAQ:OSTK) stock was on the rise today following news of a blockchain project that is in the works.
Overstock.com Inc is creating a new company called De Soto, Inc. that will focus on using blockchain to determine property and territory rights. Patrick Byrne, the founder of OSTK, is teaming up with economist Hernando de Soto and blockchain subsidiary Medici Ventures for the effort.
“About 80 percent of the world’s population is unable to enter into the modern global economy due to lack of visible and standardized property records. Billions of people have resources that cannot easily be transformed into productive capital” Hernando de Soto said in a statement. “Blockchain is a powerful tool to solve these structural issues, which are some of the principal causes of poverty and conflict.”
Overstock.com Inc notes that it will using mobile apps and social media to help determine informal ownership records around the world. This will allow property owners to better value their assets and will create a place for corporations looking to seek out those with the rights to certain properties and territories.
Byrne says that the efforts of De Soto, Inc. will allow many people in poverty to take part in a global market. The move might be good news for OSTK stock as there is plenty of untapped value in property rights. This includes $14 trillion of “dead property” belonging to the poor living in third-world countries.
Overstock.com Inc is planning to launch its first pilot program for the system in early 2018.
OSTK stock was up 6% as of Wednesday morning and is up 213% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.