tZERO Passes Key Regulatory Exam for Tokenized Securities Custody

tZERO Group, Inc., a pioneering force in blockchain and tokenization for capital markets, has achieved a significant regulatory milestone through its subsidiary tZERO Digital Asset Securities, LLC. The company announced the successful completion of its first regulatory examination without any exceptions, marking a crucial achievement in its role as a Special Purpose Broker-Dealer (SPBD) authorized to custody tokenized securities. This accomplishment underscores tZERO's unwavering commitment to compliance, transparency, and investor protection as it advances the digital asset securities market. The regulatory exam success validates the company's operational framework and reinforces its position as one of only two firms nationwide holding this unique SPBD status, which permits custody, clearing, and trading of digital asset securities.

Since launching in September 2024, tZERO Digital Asset Securities has been actively providing custody and trading support for tokenized securities through infrastructure that combines traditional capital market safeguards with blockchain technology's efficiency and transparency benefits. The company's leadership emphasized the significance of this achievement, with CEO Alan Konevsky noting that it demonstrates digital securities can be transacted and custodied with the same rigor as traditional instruments. President Alex Vlastakis highlighted that this milestone establishes the foundational infrastructure needed to scale operations and simplify adoption for both issuers and investors. The company's correspondent custody and clearing services also provide an effective alternative for other broker-dealers who lack approval to custody digital asset securities directly, making these innovative services available through tZERO's established platform.

The successful regulatory examination represents more than just operational readiness—it serves as the foundation for tZERO's strategic expansion in the digital asset space. The company is building trusted partnerships, expanding multi-asset capabilities, and driving transparency and institutional engagement across global markets. As a registered broker-dealer with the SEC and member of FINRA and SIPC, tZERO Digital Asset Securities operates in accordance with regulatory standards while leveraging blockchain innovation. This achievement positions tZERO at the forefront of creating secure, compliant pathways for digital asset securities, bridging the gap between traditional financial markets and emerging blockchain technologies while maintaining the highest standards of investor protection and regulatory compliance.