tZERO Group, Inc., a blockchain-powered multi-asset infrastructure provider, announced it can now support cryptocurrencies using its digital assets securities brokerage platform. The company stated that artificial restrictions preventing it from operating a non-security crypto asset business have been lifted, allowing expansion into this sector.
As one of only two original special purpose broker-dealers, tZERO has extensive experience in custodying tokenized assets directly on-chain in wallets it operates. The company's operations were designed to meet rigorous standards for broker-dealer possession of digital asset securities set forth in SEC guidance. tZERO has spent years building institutional-grade infrastructure, processes, and expertise required for secure, on-chain digital asset custody services.
This development follows tZERO's recent announcement that its regulated tokenized asset trading platform now supports user self-custody and on-chain settlement via self-hosted wallets. By combining self-custody capabilities with the new ability to handle non-security crypto assets, tZERO positions itself to bridge regulated markets with the decentralized finance ecosystem.
"Operational, technological and regulatory distinctions among financial asset types are vestigial. The future is singular," said Alan Konevsky, Chief Executive Officer of tZERO. "Tokenization has the potential to unite all financial experiences - all of our economy - under one rubric. We are building that future where all asset types - crypto, real-world assets, equities, and others - leave their silos and converge on unified blockchain rails."
Konevsky emphasized that operating this infrastructure under one regulated roof represents a significant efficiency advantage. "Our broker-dealer subsidiaries have a meaningful leg up having spent years operating at the intersection of traditional finance and blockchain-based assets where others are just waking up," he stated. "It is the most natural evolution for us to leverage these existing capabilities to expand our business to crypto issuance, trading, and custody."
tZERO Digital plans to launch non-security crypto asset deposits in early Q2 2026, which can be used to fund securities transactions on the platform. Additional non-security crypto asset services will follow this initial offering. The company's broker-dealer subsidiaries are registered with the SEC and members of FINRA and SIPC, with more information available through FINRA's BrokerCheck.
The expansion into cryptocurrency services represents a significant development for institutional investors and the broader financial industry. By leveraging its existing regulatory framework and infrastructure, tZERO creates a pathway for traditional financial institutions to access cryptocurrency markets through regulated channels. This move could accelerate institutional adoption of digital assets while maintaining compliance standards expected in traditional securities markets.
For the cryptocurrency industry, tZERO's entry provides validation of blockchain technology's potential to transform financial markets. The company's ability to offer both security and non-security digital assets on a single platform addresses fragmentation that has historically separated traditional financial markets from emerging crypto ecosystems. This convergence could lead to increased liquidity, improved price discovery, and enhanced market efficiency across asset classes.
The announcement signals growing maturity in digital asset markets as regulatory frameworks evolve to accommodate new technologies. tZERO's approach demonstrates how existing financial regulations can adapt to emerging asset classes while maintaining investor protections. As more financial institutions explore digital asset opportunities, tZERO's model provides a template for integrating traditional financial services with blockchain-based innovations.
