tZERO Group Inc., a firm focused on technology solutions for capital markets, is pleased to confirm that the “full” tokenization of its Series-A Preferred Equity Security (TZROP) will occur on March 14, 2025.
Once completed, TZROP will become the “first” digital asset security to be custodied by tZERO’s Special Purpose Broker-Dealer, tZERO Digital Asset Securities, one of “only two digital securities broker-dealer custodians in the US.”
As previously announced, the full tokenization of TZROP is expected to unlock new utility features, “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 end-to-end 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.”
As covered, tZERO Group, Inc. and its broker-dealer subsidiaries “provide an innovative 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.”
All technology services are offered through tZERO Technologies, LLC.
As noted in the update, tZERO Digital Asset Securities, LLC is a broker-dealer registered with the SEC and a “member of FINRA and SIPC. It is the broker-dealer custodian of all digital asset securities offered on tZERO’s online brokerage platform.”
It operates in accordance with the SEC’s statement, dated December 23, 2020, regarding “the Custody of Digital Asset Securities by Special Purpose Broker-Dealers.”
Digital asset securities may not be ‘securities’ as defined under the Securities Investor Protection Act (SIPA)-and in particular, digital asset securities that are ‘investment contracts’ under the Howey test but are not registered with the Securities and Exchange Commission are “excluded from SIPA’s definition of ‘securities’-and thus the protections afforded to securities customers under SIPA may not apply.”
tZERO Securities, LLC is a broker-dealer “registered with the SEC and a member of FINRA and SIPC.”
It is the operator of the tZERO Securities ATS.