tZERO has received approval from the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to offer digital asset custody services.
SEC and FINRA Approval
According to a press release published on September 10, tZERO expects to officially launch its service in early 2025. The first product to go live will be TZROP, the platform’s Series-A preferred equity security.
New Opportunities for tZERO
The SEC and FINRA approval allows tZERO’s subsidiary, Digital Asset Securities, to operate as a regulated special purpose broker-dealer, providing custodian services for digital assets. These products leverage blockchain technology and offer investment opportunities in a regulated environment. Private securities, tokenization of real-world assets, and funds fall into this category. Consequently, tokenized real estate, art, and sports have gained traction amid blockchain adoption.
Management's Comment
Approval for tZERO means TZROP, which the company debuted in 2019, will now become the first digital asset security to trade on the SEC-regulated tZERO Securities ATS. Prior to this milestone, digital security issuers faced numerous challenges, including forgoing key blockchain features to ensure compliance or issuing assets outside the U.S.
Now, tZERO has the opportunity to power this ecosystem by bringing blockchain to the capital markets.
Comments