tZERO and ICE (NYSE:ICE), the parent company of the New York Stock Exchange (NYSE), have signed a deal to partner on the tokenization of public securities. At the same time, ICE has committed to investing in tZERO. The details on the investment were not immediately available.
In a corporate release, the companies signed a memorandum of understanding for tZERO to develop a digital transfer agent and broker-dealer infrastructure to support on-chain settlement of tokenized securities transactions on the forthcoming NYSE-affiliated tokenized securities platform (the Digital Trading Platform).
ICE is consulting with tZERO to establish standards for transfer agents, tokenization agents and/or broker-dealer subscribers for transactions. tZERO is expected to be designated as an approved digital transfer agent and subscriber to the Digital Trading Platform.
Tokenizing stocks, or digital securities, is expected to reduce friction in the issuance and ongoing management of these assets. Certain aspects of a tokenized share may be automated, thus reducing cost while improving speed and security.
The partnership with ICE is a validation of the tZERO journey and a key achievement for the digital asset pioneer.