tZERO Group Inc., a technology solutions provider for capital markets, announces that its Series-A Preferred Equity Security (TZROP) will be “fully tokenized” in March 2025 and become the “first” digital asset security to be custodied by its Special Purpose Broker-Dealer, tZERO Digital Asset Securities, one of “only two” digital securities broker-dealer custodians in the US.
The full tokenization of TZROP will unlock potential for future smart contract automation functionalities and will “deploy new utility features at the time of TZROP’s full tokenization, including issuer tools leveraging artificial intelligence (AI) data driven insights relating to TZROP’s ownership structure, transactions and investor base, while maintaining data privacy.”
This tool set will form the backbone of tZERO’s digital asset security product offering for issuers looking to “fully tokenize their capital tables in a way that introduces meaningful and actionable issuer and investor facing tools that prove the use case for tokenized and automated securities versus legacy book-entry systems dispersed across multiple databases and market participants.”
David Goone, tZERO‘s CEO said:
“We are happy to confirm that we will deliver on our previously announced plans to fully tokenize TZROP. The new and upcoming TZROP utility features will be available to all issuers who tokenize with tZERO, with more utility for investors to follow.”
tZERO plans to leverage the technology powering TZROP to bring “additional utility features to its investors in the future, which may include individual customer custodial wallets, on-chain KYC verification and accreditation or automated on-chain corporate actions, without sacrificing data privacy standards.”
Alan Konevsky, Executive Vice President and Chief Legal & Corporate Affairs Officer of tZERO, said:
“Next month, we will take the next step forward on our journey of responsible innovation. As the regulatory landscape for digital assets positively evolves, including in view of new initiatives from the Administration and the SEC, we will continue to evolve our product offering for the benefit of issuers, end users and the marketplace.”
TZROP was issued in a private placement in August 2018 and in January 2019, it illustrated how “a private security can trade on the tZERO Securities ATS, a broker-dealer operated, continuous and automated marketplace. tZERO’s flagship trading asset will be the first digital asset security to be traded on the tZERO Securities ATS.”
In connection with the full tokenization of TZROP and its “transition to special purpose broker dealer custody, there will be a negative consent process for tZERO Securities customers, which will be explained by tZERO Securities in a direct communication to its customers. tZERO will announce the exact launch date in March 2025.”
tZERO Group, Inc. and its broker-dealer subsidiaries “provide a liquidity platform for private companies and assets.”
They reportedly offer institutional-grade solutions for issuers looking to digitize their capital table “through blockchain technology, and make such equity available for trading on an alternative trading system.”
tZERO, through its broker-dealer subsidiaries, “democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors.”