tZERO secures SEC and FINRA approval for digital securities custody in the US
The Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have granted the tZERO approval to provide digital asset securities custody.
@tZERO and its broker-dealer subsidiaries received SEC and FINRA approval to operate as one of only two Special Purpose Broker-Dealers in the US for digital asset securities custody. This is a significant achievement in our multi-year effort to support the entire digital… pic.twitter.com/JBY382OgaS
— tZERO (@tZERO) September 10, 2024
In a statement released on September 10, tZERO stated that it plans to formally launch its service in the first part of 2025. The Series-A preferred equity security on the platform, TZROP, will be the first product to launch.
In August 2018, TZROP was issued through a private placement. A regulated, continuous, and automated marketplace for private securities trading on the tZERO Securities ATS was first established by TZROP in January 2019. The first digital asset security to be traded on the tZERO Securities ATS will be tZERO's flagship trading asset, demonstrating how this regulatory approval will improve the tZERO Securities ATS trading ecosystem.
This license represents a significant advancement in tZERO's ongoing efforts to develop and adopt securities that will fully utilize blockchain technology for a range of assets, including securitized real estate, art, sports, and other real-world assets and funds. Currently, there are only two licenses for regulated broker-dealer digital asset security custodians approved in the United States since the SEC introduced the rules in 2020, the post added.
Alan Konevsky, Executive Vice President and Chief Legal & Corporate Affairs Officer of tZERO, said that as we progress toward an integrated regulated infrastructure layer and connective tissue for compliant digital assets, we will take advantage of this exceptional opportunity to demonstrate, on behalf of the digital asset industry as a whole, how favorable regulatory clarity can create real-world innovation, novel products, and real commercialization across a range of traditional financial and real-world assets.
Smart contract automation can be used by tZERO's established technology services and SEC-approved transfer agent unit to power a range of other functions, in addition to assisting issuers in issuing and transferring digitally native securities on a blockchain.
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