tZERO, a pioneer in the tokenization sector, has commented on the Innovation Exemption order published by the Securities and Exchange Commission today. The innovation exemption supports tokenized assets or digital securities. A tokenized securities venue, or TSV, can trade tokenized NMS stocks (NYSE/Nasdaq listings) through a permissioned AMM (automated market maker liquidity pool).
tZERO CEO Alan Konevsky said:
“This is a significant step by the SEC in recognizing the role of tokenized assets and DeFi functionality — supported by robust market infrastructure, connective tissue for other institutional market participants, technology, and IP/patents tZERO really excels at. Way more to come.”
The Innovation Exemption did not enable DeFi transactions; that is yet to come.
The Innovation Exemption does validate the direction of tZERO, which pursues real, not wrapped, tokenized securities. It is unclear how much advantage there is to tZERO’s existing platform and intellectual property affilated with its offerings.