tZERO Broker-Dealer Subsidiary Achieves Regulatory Milestone as Tokenized Security Custodian

tZERO Group, Inc. announced that its subsidiary, tZERO Digital Asset Securities, LLC, has reached a key milestone as a Special Purpose Broker-Dealer permitted to custody tokenized securities. One year after securing SPBD approval, the firm successfully completed its first regulatory exam without exception, demonstrating tZERO's commitment to compliance, transparency, and investor protection in the digital asset securities market.

An SPBD is an SEC-registered broker-dealer authorized to custody, clear and facilitate trading in digital asset securities. tZERO Digital Asset Securities is one of only two firms nationwide to hold this unique status. The company is also approved to offer correspondent custody and clearing services to other broker-dealers who lack this approval, providing an effective alternative to non-broker-dealer-led custody for digital asset securities.

Since its designation, the company has provided custody, clearing, and trading of tokenized securities through infrastructure that mirrors the safeguards of traditional capital markets while leveraging blockchain technology to increase efficiency and transparency. This achievement underscores tZERO's leadership in building trusted, regulated infrastructure for digital assets that bridges blockchain innovation with established regulatory standards.

Alan Konevsky, Chief Executive Officer of tZERO, stated that this milestone reflects the strength of their operational framework and commitment to building trust through compliance. He emphasized that digital securities can be transacted and custodied with the same rigor as traditional instruments, noting that completing the first exam without exception validates their approach of delivering innovation responsibly within the regulatory framework. Konevsky highlighted their leading edge in experience and market presence, which is available to other broker-dealers through their correspondent custody and clearing services at https://www.tzero.com.

Alex Vlastakis, President of tZERO Digital Asset Securities, added that reaching this one-year milestone represents more than just operational readiness—it establishes the foundational infrastructure needed to scale, simplify adoption, and add value for issuers and investors. He emphasized that the company is building the secure, compliant pathways that will define the digital asset securities market moving forward.

Since launching in September 2024, tZERO Digital Asset Securities has actively custodied and supported tokenized securities trading. This regulatory achievement advances tZERO's strategic priorities of building trusted partnerships, expanding multi-asset capabilities, and driving transparency and institutional engagement across global markets. The company operates in accordance with the SEC's statement regarding the Custody of Digital Asset Securities by Special Purpose Broker-Dealers, with additional information available through FINRA's BrokerCheck at https://brokercheck.finra.org.

The successful regulatory examination positions tZERO Digital Asset Securities as a key player in the evolving landscape of digital asset regulation. As one of only two firms with SPBD status nationwide, the company's compliance milestone signals growing institutional acceptance of tokenized securities while maintaining the investor protections characteristic of traditional financial markets. This development represents a significant step toward mainstream adoption of blockchain technology in capital markets, potentially paving the way for broader institutional participation in digital asset securities.