tZERO Seeks Regulatory Approval for Comprehensive Non-Security Crypto Services

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 significant step in the company's broader strategy to create a unified, interoperable digital asset ecosystem that connects regulated market infrastructure across global markets with blockchain-native execution, settlement, and custody.

The application builds upon tZERO's existing regulated footprint, including its position as one of only two broker-dealers permitted to custody digital asset securities directly on chains in wallets operated by tZERO. The company's years of experience in the tokenized securities market and as a provider of on-chain custody services position it to deliver this next evolution of its product offering.

Key components of the proposed service include integrated issuance support for primary issuance of crypto assets with smooth transition to secondary trading and liquidity. The platform would offer dual custody options through either self-hosted wallets or custodial wallets under tZERO Digital. Multi-venue routing and execution would allow orders to be routed to tZERO's ATS, third-party centralized exchanges, liquidity providers, or decentralized protocols (DeFi). On-chain settlement would include atomic locking and smart-contract driven transfers, allowing trades to settle either bilaterally between users or through tZERO Digital as a user's 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 the 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 would also support tZERO's digital asset securities offerings, including plans to support public tokenized stock with end-to-end on-chain infrastructure. "This initiative supports the infrastructure we ultimately want to deliver, ideally under one regulated roof: user-choice in custody, open connectivity across market venues, and on-chain settlement that reduces friction while maintaining regulatory integrity," added Vanessa Savino, Chief Legal Officer at tZERO.

For investors and industry participants, this development signals a potential shift toward more integrated digital asset markets where traditional regulatory frameworks meet blockchain innovation. The application to FINRA represents a formal step toward creating a comprehensive platform that could bridge the gap between traditional securities markets and emerging crypto asset markets. More information about tZERO Digital Asset Securities may be found on FINRA's BrokerCheck, while details about tZERO Securities are available through the same regulatory portal.

The move toward a unified digital asset ecosystem has implications for market structure, potentially reducing fragmentation across different asset classes and trading venues. By leveraging existing regulatory approvals and infrastructure, tZERO aims to create a more seamless experience for institutional and retail participants navigating both security and non-security digital assets. This development comes as the digital asset industry continues to seek regulatory clarity while maintaining innovation in blockchain-based financial services.