tZERO Seeks FINRA Approval to Expand Services to Non-Security Crypto Assets

tZERO Group, Inc., a blockchain-powered multi-asset infrastructure provider, announced it is working with FINRA on an application to support end-to-end issuance and secondary trading services for non-security crypto assets. This move represents a strategic expansion for the company, which has built its reputation in the tokenized securities market, positioning it to create a more comprehensive digital asset platform.

The application is part of tZERO's broader vision to develop a unified, interoperable digital asset ecosystem. The company aims to connect regulated market infrastructure across global markets with blockchain-native execution, settlement, and custody, covering the entire digital asset lifecycle. tZERO plans to leverage its existing regulated footprint, including its status as one of only two broker-dealers permitted to custody digital asset securities directly on-chain in wallets it operates.

Key components of the proposed service include integrated issuance support for primary crypto asset offerings with a smooth transition to secondary trading, dual custody options allowing users to choose between self-hosted wallets or custodial wallets under tZERO Digital, and multi-venue routing that can direct orders to tZERO's Alternative Trading System (ATS), third-party centralized exchanges, liquidity providers, or decentralized protocols (DeFi). The system would also feature on-chain settlement with atomic locking and smart-contract driven transfers, enabling trades to settle either bilaterally between users or through tZERO Digital as a clearing broker.

"This step is another milestone in our long-term convergence strategy and our leadership with on-chain operations as a broker-dealer," said Alan Konevsky, CEO of tZERO. "We envision a future where all asset types – crypto, RWAs, equities, stablecoins, predictive markets, derivatives and other asset types – leave their silos and converge and interact on unified blockchain/smart contract rails." Konevsky emphasized that expanding their ability to facilitate non-security digital assets within a regulated framework moves the industry closer to a global, 24/7 market structure built on interoperability and automation.

The infrastructure being developed for non-security crypto services is expected to bolster tZERO's digital asset securities offerings as well, including plans to support public tokenized stock with end-to-end on-chain infrastructure. According to Konevsky, this initiative supports the ultimate goal of delivering user-choice in custody, open connectivity across market venues, and on-chain settlement that reduces friction while maintaining regulatory integrity – ideally under one regulated roof.

Vanessa Savino, Chief Legal Officer at tZERO, added that the company's legal and regulatory initiatives continue to focus on driving this vision forward. The company's experience as a provider of on-chain custody services and its years in the tokenized securities market uniquely position it to deliver this next evolution of its product offering. More information about tZERO Digital Asset Securities may be found on FINRA's BrokerCheck.

This development is significant because it represents a major financial technology company moving to bridge the gap between traditional regulated securities markets and the broader cryptocurrency ecosystem. By seeking to operate within existing regulatory frameworks while expanding into non-security crypto assets, tZERO could help establish more standardized practices and increased institutional participation in digital asset markets. The move toward a unified platform for multiple asset types could potentially reduce market fragmentation and create more efficient capital markets infrastructure for both traditional and emerging asset classes.