tZERO Broker-Dealer Subsidiary Achieves Regulatory Milestone in Tokenized Securities Custody

tZERO Group, Inc., a leader in blockchain and tokenization for capital markets, announced that its subsidiary tZERO Digital Asset Securities, LLC has successfully completed its first regulatory examination without any exceptions. This milestone comes exactly one year after the firm secured Special Purpose Broker-Dealer (SPBD) approval from the SEC, positioning it as one of only two firms nationwide authorized to custody, clear, and facilitate trading in digital asset securities.

The successful regulatory examination underscores tZERO's commitment to compliance, transparency, and investor protection as the company advances the digital asset securities market. An SPBD is an SEC-registered broker-dealer specifically authorized to handle digital asset securities, and tZERO Digital Asset Securities has leveraged this unique status to provide correspondent custody and clearing services to other broker-dealers who lack this approval. This creates an effective alternative to non-broker-dealer-led custody for digital asset securities, bridging traditional financial safeguards with blockchain innovation.

Alan Konevsky, Chief Executive Officer of tZERO, emphasized the significance of this achievement, stating that it reflects the strength of their operational framework and commitment to building trust through compliance. "At tZERO Digital Asset Securities, we are proving every day that digital securities can be transacted and custodied with the same rigor as traditional instruments," Konevsky said. "Completing our first exam without exception is further validation that we are on the right path - delivering innovation responsibly within the regulatory framework."

Since launching in September 2024, tZERO Digital Asset Securities has actively custodied and supported tokenized securities trading through infrastructure that mirrors the safeguards of traditional capital markets while leveraging blockchain technology to increase efficiency and transparency. The company's approval to offer correspondent services means other broker-dealers can utilize their infrastructure rather than developing their own custody solutions for digital assets. More information about tZERO Digital Asset Securities may be found on FINRA's BrokerCheck.

Alex Vlastakis, President of tZERO Digital Asset Securities, described the one-year milestone as foundational for future growth. "We've established the foundational infrastructure needed to scale, simplify adoption, and, most importantly, add value for issuers and investors," Vlastakis explained. "We are not just participating in this market - we are building the secure, compliant pathways that will define it."

This regulatory achievement represents a critical step in the maturation of digital asset markets, demonstrating that blockchain-based securities can operate within established regulatory frameworks. The successful examination without exceptions validates tZERO's approach to combining technological innovation with rigorous compliance standards, potentially accelerating institutional adoption of tokenized securities. As digital assets continue to gain traction in mainstream finance, tZERO's regulatory compliance milestone sets an important precedent for how blockchain technology can integrate with traditional financial oversight mechanisms while maintaining investor protections.