tZero becomes 2nd FINRA-approved broker-dealer for digital securities

September 11, 2024 Coin Telegraph

The company is following the steps of Prometheum, which now treats four cryptocurrencies as securities.

The United States has a second special purpose broker-dealer (SPBD) for digital asset securities. The Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) have approved tZero Digital Asset Securities as a digital asset SPBD, giving it the right to custody digital asset securities on behalf of retail and institutional clients.

Its new status allows SEC-regulated alternative trading system operator tZero to carry out custody, clearance and settlement of securities without a third-party custodian, making tZero a “one-stop shop” for digital asset security issuance and secondary trading, the company said in a statement. The company helps private companies go public through securities offerings.

tZero has a “long-standing position that many digital assets in the market constitute securities under existing legal frameworks,” it said. Although that claim is widely disputed in the crypto world, tZero will treat digital assets as securities when it provides custody of them. tZERO chief legal and corporate affairs officer Alan Konevsky said:

NY stock exchange owner ICE buys stake in tZero security token platform

February 23, 2022 Coin Telegraph

Coin Telegraph

The undisclosed investment will result in ICE becoming a significant minority shareholder in tZero and is another sign of the closing of the divide between equities and crypto assets.

The Intercontinental Exchange (ICE) has announced a strategic investment in private digital securities marketplace and crypto asset liquidity platform tZero.

ICE, which owns and operates 12 global exchanges including the New York Stock Exchange (NYSE), made the announcement on Feb. 22, however, there was no mention of the terms or details of the investment other than ICE becoming a “significant minority shareholder” in tZero.

It did state that as part of the investment, ICE’s Chief Strategy Officer David Goone will join tZero as its new CEO serving on the board of directors.

tZero operates a blockchain-based alternative trading system (ATS) upon which companies can list tokenized versions of their stocks. The firm is fully regulated with the Securities and Exchange Commission (SEC) and acts as a broker-dealer in the digital asset space, also offering a number of cryptocurrencies. The platform only offers a handful of tokenized stocks at the moment, one of which is early investor Overstock under the ticker OSTKO.

The platform’s target market is financial firms and investors seeking access to a digital marketplace and unique private assets and equities such as cryptocurrencies and nonfungible tokens (NFTs).

ICE founder, Chairman, and CEO, Jeff Sprecher, commented on Goone’s appointment stating that he has been a “steward of our problem-solving culture,” before adding:

“David’s leadership and his mastery of trading, data, and clearing technology will be a big asset as tZERO begins its next chapter leading the growth and adoption of next-generation market infrastructure.”

Goone, who has been with ICE since 2001, brings a lot of experience to the table having developed and managed many of ICE’s product lines during his tenure.

ICE is a Fortune 500 firm and leader of global exchanges and clearinghouses that provide financial technology and data services across major asset classes.

tZero got off to a rocky start following its security token offering (STO) and numerous investments in 2020. At the time, the fledgling security token platform was still losing money, though this latest investment could provide access to new markets for tZero.

As reported by Cointelegraph on Feb. 15, the NYSE is showing a greater interest in the digital asset space as it filed a patent application for a number of crypto and blockchain-related products and services. These include an online marketplace for trading crypto assets, NFTs, and Metaverse technology such as augmented reality software.

tZERO to tokenize $18M of stock for the ‘Robinhood of real estate investing’

July 1, 2021 Coin Telegraph

tZERO to tokenize M of stock for the ‘Robinhood of real estate investing’

Coin Telegraph

Around $18 million worth of NYCE’s common shares will be tokenized and supported for secondary trading on tZERO’s security token trading platform.

tZERO, an alternative trading system for security tokens, has announced a partnership with real estate crowdfunding company, NYCE Group, to tokenize $18 million worth of the firm’s shares.

NYCE’s stock will be tZERO’s first new listing since launching its ASPN pairing in August 2020, representing fractionalized ownership in a Colorado ski resort.

Announced June 30, tZERO will support secondary trade for NYCE’s tokenized common shares once the real estate company has completed its upcoming Regulation A+ offering, subject to regulatory approval.

NYCE’s shares will be tokenized using tZERO’s proprietary smart contract technology. Philip Michael, CEO and co-founder of NYCE, stated:

“Through our partnership with the leader in liquidity for digital securities, tZERO, we are excited to provide investors with liquidity optionality.”

The real estate firm was founded by Michael and FC Barcelona soccer player Martin Braithwaite, with media describing the platform as a “Robinhood of real estate investing.”

The NYCE app allows retail investors to own fractionalized shares in properties from its $260 million portfolio, describing its mission to create 100,000 high-net-worth millennial stakeholders of color by 2030.

NYCE finalized its $1 million Regulation Crowdfunding (Reg CF) offering in October 2020, setting a record for the fastest Reg CF offering to raise seven figures. The company formally launched its app in March.

Of the tokens on the exchange, volume for the ASPN token has consistently lagged behind tZERO’s native token TZROP and Overstock’s digital security OSTKO since the resort’s token was launched.

The security token sector has been on a wild ride in recent years, with monthly volume increasing from roughly by more than 110 times from less than $200,000 as of January 2020 to roughly $22 million during August.

However, monthly trade activity has since slumped more than 75% with less than $5 million in May.

According to Security Token Group’s latest report, TZROP was the most-traded security token for the month of May with nearly $2.7 million worth of trade. TZROP’s market cap is currently roughly $140 million, which would rank it as the 229th-largest crypto asset by capitalization, according to CoinGecko.

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