tZERO Group, Inc., a blockchain-powered multi-asset infrastructure provider, announced that its alternative trading system can now facilitate trading of crypto asset securities directly custodied on-chain by customers in their own self-hosted wallets, with transactions settled directly by customers on-chain. This development marks a critical advancement in tZERO's convergence strategy, creating an additional bridge between traditional finance and the broader decentralized finance ecosystem for customers and API partners.
The capability enables customers to interact with tZERO's regulated ATS without relinquishing control of their private keys or assets to middleman custody. As one of only two broker-dealers that have been custodying securities directly on-chain in its own wallets, tZERO will continue to offer omnibus or individual wallet custody alongside self-hosted wallet connectivity for investors who prefer broker-dealer custody for operational, regulatory, or other reasons. This hybrid approach recognizes that different market participants have varying preferences regarding asset custody.
"We are fast becoming the connective tissue for market participants across all vectors of Web3," said Alan Konevsky, CEO of tZERO. "By enabling custody and settlement via self-hosted wallets, we are providing the optionality that the market demands while pointing at the endstate of this revolution - compliant and transparent marketplaces that rely on self-regulating technology and asset sovereignty to deliver a cross-asset, cross-border and cross-protocol, AI-enabled investing experience."
A central pillar of this feature is custodial optionality, allowing customers to directly custody their own assets on-chain using self-hosted wallets or broker-dealer custody, facilitating seamless movement between traditional finance and decentralized ecosystems. tZERO plans to integrate key management and wallet infrastructure providers in the first half of 2026 to support secure, compliant settlement workflows involving self-hosted wallets.
"With this new capability, we continue to demonstrate our commitment to advancing innovation in a responsible manner, while working with regulators," added Vanessa Savino, Chief Legal Officer of tZERO. "Regulatory clearance to be interoperable with user self-hosted wallets promotes crypto asset programmability, portability, and transparency in our brokerage ecosystem."
The importance of this development lies in its potential to reshape how institutional and retail investors interact with digital assets. By maintaining regulatory compliance while offering self-custody options, tZERO addresses key concerns about asset sovereignty and control that have limited broader adoption of crypto securities. This move could accelerate institutional participation in digital asset markets by providing familiar trading infrastructure while preserving the decentralized principles of blockchain technology.
For more information about tZERO Digital Asset Securities, LLC, visit https://brokercheck.finra.org. Additional details about tZERO Securities, LLC can also be found at https://brokercheck.finra.org. The original release is available at https://www.newmediawire.com.
