tZERO receives SEC SPBD approval, becoming a regulated digital asset custodian and broker-dealer.

The financial technology company tZERO Group Inc. has announced that it has received approval from U.S. regulatory authorities to operate as a Special Purpose Broker-Dealer (SPBD) for "digital asset security custody." This trading firm, invested in by Intercontinental Exchange, the parent company of the New York Stock Exchange, will focus on issuing and trading securities, including digital assets, in full compliance with regulations.

Special Purpose Broker-Dealers, SPBD

What is tZERO?

tZERO is a financial technology company founded in 2014, dedicated to providing services for businesses, entrepreneurs, as well as retail and institutional investors, offering innovative solutions and products for primary financing, capital restructuring, and secondary trading. tZERO's platform supports the trading of traditional private securities and digital securities, utilizing blockchain technology to address challenges in the capital market.

In 2022, tZERO received a strategic investment from Intercontinental Exchange, the parent company of the New York Stock Exchange, and appointed David Goone, the Chief Strategy Officer of Intercontinental Exchange, as the new CEO of tZERO. The backing of Intercontinental Exchange has enhanced tZERO's technological capabilities, security, brand trust, and compliance.

SEC Issues Only Two Digital Asset Custody Licenses

Since the introduction of regulations by the U.S. Securities and Exchange Commission (SEC) in 2020, tZERO became the second regulated broker-dealer and digital asset custody provider to receive approval. In contrast to the first company, Prometheum, which faced controversies such as falsified data, incubation by a Chinese company, and other issues, tZERO's association with Intercontinental Exchange should provide investors with more confidence.

While successfully registered with the SEC, exchange Prometheum faces allegations of being incubated by a Chinese entity and involvement in securities fraud.

According to their press release, tZERO and its broker-dealer subsidiary plan to launch this new service in early 2025, starting with the full digitization of tZERO's Series A Preferred Stock TZROP and potentially other issuers.

CEO David Goone stated:

I look forward to leveraging my decade of product innovation and strategic experience in the exchange and derivatives trading industry to drive tZERO's continued growth and operational excellence.