tZERO Group, Inc., a firm focused on the blockchain sector and tokenization for capital markets, announced that its subsidiary, tZERO Digital Asset Securities, LLC, reached a new milestone in its role as a Special Purpose Broker-Dealer (SPBD) permitted to custody tokenized securities.
A year after obtaining SPBD approval, the company has completed its first regulatory exam without exception – highlighting tZERO’s ongoing commitment and focus on compliance, transparency, as well as ensuring investor protection as it supports the digital asset securities market.
An SPBD is an SEC-registered broker-dealer that has been authorized to custody, clear and facilitate trading in digital asset securities.
tZERO Digital Asset Securities is reportedly one of only two firms in the US to hold this status.
It is approved to provide these correspondent custody and clearing services to other broker-dealers that may lack this approval as an alternative to non-broker-dealer-led custody for crypto-assets securities.
With its designation, the firm has provided custody, clearing, and trading of tokenized securities via infrastructure that is similar to the safeguards of traditional capital markets while leveraging blockchain tech to boost efficiency and transparency.
Alan Konevsky, Chief Executive Officer of tZERO, said:
“While we expect the regulatory landscape to continue to liberalize, and similar activities becoming available to other market participants, we have a leading edge in terms of experience and market presence – which is also available to other broker-dealers who are not currently permitted to custody tokenized securities directly, and can elect to use our correspondent custody and clearing services.”
Alex Vlastakis, President of tZERO Digital Asset Securities, said:
“We’ve established the foundational infrastructure needed to scale, simplify adoption, and, most importantly, add value for issuers and investors.”
Since launching in September 2024, tZERO Digital Asset Securities has custodied and supported tokenized securities trading.
This underscores its role in bridging blockchain tech with regulatory standards – and supporting tZERO’s strategic focus on establishing partnerships, enhancing multi-asset capabilities, and enabling institutional engagement across international markets.