tZERO Receives FINRA Approval to Offer Retail Access to Tokenized Mutual Funds

tZERO Group Inc. announced that its broker-dealer subsidiary, tZERO Securities, has received approval from the Financial Industry Regulatory Authority (FINRA) to act as a retailer of open-end investment companies, including tokenized mutual funds. This regulatory milestone enables the firm to offer a broader range of investment products to everyday investors through its retail platform.

The approval represents a significant expansion of tZERO's regulatory portfolio and aligns with the company's vision for a connected, multi-asset ecosystem that bridges traditional finance and Web3 technologies. According to Alan Konevsky, Chief Executive Officer of tZERO, this development supports the cross-asset interoperability and efficiency that tokenized fund products provide. The company can now integrate tokenized mutual fund products into its retail platform, offering investors continuous subscription and redemption opportunities through a regulated broker-dealer interface.

This regulatory approval accelerates tZERO's growth strategy and broadens the range of investment products the company can deliver to retail investors. Mike Diedrichs, SVP and Head of Sales of tZERO, noted that the expanded access supports the company's long-term vision for fully integrated digital markets and positions tZERO to lead the next phase of evolution in investment infrastructure. The approval enhances tZERO's ability to support settlement infrastructure using a retail money market product, similar to its collaboration with Lynq, where tZERO Securities serves as the broker-dealer operator of an interest-bearing settlement network designed for institutional clients.

tZERO Securities is now open to working with prospective fund sponsors and asset managers to bring tokenized mutual fund products to its platform. This development represents an incremental step in furtherance of tZERO's broader mission of delivering a multi-asset platform to its customers, creating new opportunities to bring yield-oriented products to retail investors alongside its existing product offerings. The company's broker-dealer subsidiaries provide institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology, making such equity available for trading on an alternative trading system.

Investors should note that digital asset securities may not be "securities" as defined under the Securities Investor Protection Act (SIPA), and protections afforded to securities customers under SIPA may not apply. More information about tZERO Digital Asset Securities may be found on FINRA's BrokerCheck. tZERO Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC, operating the tZERO Securities ATS, with additional information available through the same FINRA's BrokerCheck resource.