The Securities and Exchange Commission and the Financial Industry Regulatory Authority have given TZERO permission to provide custody of digital asset securities.
In a press release released on September 10, tZERO stated that it plans to start its service in the first part of 2025 formally. The Series-A preferred equity asset on the platform, TZROP, will be the first product to launch.
Digital Asset Securities, a subsidiary of tZERO, can now function as a regulated special purpose broker-dealer and offer custodial services for digital asset securities thanks to permission from the SEC and FINRA.
These products provide consumers with investing options in a controlled environment by utilizing blockchain technology.
This includes funds, tokenized real-world assets, and private securities. Consequently, with the implementation of blockchain technology, securitized real estate, art, and sports have become increasingly popular.
With tZERO’s approval, TZROP—the company’s 2019 debut—will now trade as the first digital asset security on the tZERO Securities ATS regulated by the SEC.
Prior to this significant achievement, digital security issuers had to overcome several obstacles, such as giving up important blockchain functions to maintain compliance or issuing assets outside of the United States.
tZERO now has the chance to drive this ecosystem by introducing blockchain technology to the financial markets. David Goone, the chief executive officer of tZERO:
Our special purpose broker-dealer status will enable us to offer safe, secure and regulated broker-dealer digital asset custody and other new and innovative products for issuers, investors and other market participants alike.”
