Originally published on: September 10, 2024
In a significant development for the digital asset securities market, tZero has become the second Special Purpose Broker-Dealer (SPBD) to receive approval from the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) for its digital asset securities services. This milestone enables tZero Digital Asset Securities to custody digital asset securities for both retail and institutional clients independently.
Empowering tZero as a leading player in the digital asset landscape, this approval grants them the authority to provide custody, clearance, and settlement of securities without relying on a third-party custodian. This consolidated approach positions tZero as a comprehensive solution for both digital asset security issuance and secondary trading, streamlining the process for private companies seeking to go public through securities offerings.
Recognition as a SEC-regulated alternative trading system operator further affirms tZero’s stance that numerous digital assets in the market are indeed securities within the current legal frameworks. While this viewpoint may be contested in the crypto community, tZero is committed to treating digital assets as securities within their custody services.
Excitingly, the official launch of this new service is anticipated in early 2025, with the digitization of tZero’s Series-A preferred equity security (TZROP) set to debut as their flagship product.
Prometheum, an earlier recipient of the SPBD designation for digital securities in May 2023, caused a stir in the crypto world by categorizing Ether as a security and subsequently extending this classification to Uniswap and Arbitrum. The SEC’s subsequent investigation into Ethereum’s security status concluded in June 2025, which had sparked intense debates within the industry.
With its roots as a cryptocurrency and securities exchange stemming from Overstock.com, tZero made a significant move by discontinuing its cryptocurrency operations in February 2023 as it pivoted towards establishing itself as a key player in the digital asset securities market.
Discover more insights on crypto trends and beyond in our magazine feature: “The Impact of Crypto Bots on the Market – Decoding Auto Memecoin Rug Pulls.”
Stay tuned for more updates on tZero’s innovative approach to digital asset custody and the evolving regulatory landscape shaping the future of digital securities.
