tZERO Group Inc., a firm focused on technology solutions for capital markets, has announcesdthe launch of tZERO Digital Asset Securities as a new Special Purpose Broker-Dealer for digital asset securities custody.
Investors are now reportedly able to on-board and open their custodial brokerage account with tZERO Digital Asset Securities.
Opening a tZERO Digital Asset Securities account will enable investors to seamlessly trade digital asset securities that are “expected to be available for trading on the tZERO Securities ATS.”
TZROP, tZERO’s Series-A preferred equity security, is anticipated to be fully digitized and become the first digital asset security to be “custodied by tZERO Digital Asset Securities in Q1 2025.”
tZERO broker-dealer subsidiaries have a number of other assets and products in their pipeline that are expected to “utilize this new custodial model.”
In operationalizing its special purpose broker dealer, tZERO can act as a one-stop shop or comprehensive solution for digital asset security issuance and a “range of secondary trading modalities, including continuous automated trading, auctions and block trades for a range of private assets.”
tZERO‘s tech services and SEC-registered transfer agent can assist issuers to issue and transfer digitally native securities “on a blockchain, and, critically, use smart contract automation to power a range of functions.”
Alan Konevsky, Executive Vice President and Chief Legal and Corporate Affairs Officer of tZERO, said the industry must focus on products with features that investors and issuers need.
Konevsky added that allowing broker-dealers to “custody digital asset securities is critical – cumbersome bank custody or, for now, self-hosted wallets, lead to fragmented user experience, unnecessary operational challenges, increased costs and anemic liquidity.” They also mentioned that their end-to-end solution for private markets, “including tokenized private assets, will lead the industry towards increasing compliant democratization of private assets that investors and issuers need, as well as increasing penetration of distributed ledger and smart contract automation functionalities towards a new technology-based and digitally-native securities open ecosystem.”
TZROP tokenization and product engineering “will be a key first step.”
After issuance and any relevant regulatory holding periods, investors can potentially enjoy a path to liquidity in one “seamless trading environment on the tZERO Securities’ ATS, with custody, clearance and settlement by way of tZERO Digital Asset Securities, eliminating the need for third party custodial relationships and balkanized, expensive and inefficient infrastructure.”
tZERO Group, Inc. and its broker-dealer subsidiaries provide a liquidity platform for private firms and assets.
They offer institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology, and make such equity available for trading on an alternative trading system.
tZERO, through its broker-dealer subsidiaries, claims that it democratizes access to private assets by providing an automated, and efficient trading venue to broker-dealers, institutions, and investors.
