tZERO Group, Inc., a blockchain-powered multi-asset infrastructure company, announced it is working with FINRA on a request to support end-to-end issuance and secondary trading services for non-security crypto assets. This application represents a key development in tZERO's plan to build a unified, interoperable digital asset ecosystem that connects regulated market infrastructure across global markets with blockchain-native execution, settlement, and custody.
The initiative is important because it represents a convergence of traditional financial regulation with emerging digital asset markets. By leveraging its existing regulated footprint as one of only two broker-dealers permitted to custody digital asset securities directly on-chain, tZERO aims to create a platform where various asset types can interact on unified blockchain rails. This move toward interoperability could reduce market fragmentation and create more efficient, accessible markets for investors.
Key components of the proposed service include integrated issuance support for primary issuance of crypto assets with smooth transition to secondary trading, dual custody options allowing self-hosted wallets or custodial wallets under tZERO Digital, and multi-venue routing that can direct orders to tZERO's ATS, third-party centralized exchanges, liquidity providers, or decentralized protocols (DeFi). The system would also feature on-chain settlement with atomic locking and smart-contract driven transfers.
"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," said Alan Konevsky, CEO of tZERO. "Expanding our ability to facilitate non-security digital assets within a regulated framework moves us closer to a global, 24/7 market structure built on interoperability and automation."
The infrastructure being developed for non-security crypto services will also support tZERO's digital asset securities offerings, including plans to support public tokenized stock. This creates potential efficiencies and synergies across different asset classes within a single regulated framework. More information about tZERO's regulatory status can be found on FINRA's BrokerCheck platform.
Vanessa Savino, Chief Legal Officer at tZERO, emphasized that the initiative supports infrastructure that provides "user-choice in custody, open connectivity across market venues, and on-chain settlement that reduces friction while maintaining regulatory integrity." This approach addresses one of the persistent challenges in digital asset markets: balancing innovation with appropriate regulatory oversight.
The development matters because it represents a maturing of digital asset infrastructure that could make crypto markets more accessible to institutional investors while maintaining regulatory compliance. By building on its experience in the tokenized securities market and as a provider of on-chain custody services, tZERO is positioned to bridge the gap between traditional financial markets and emerging digital asset ecosystems. This could potentially lead to more liquid, transparent, and efficient markets for both security and non-security digital assets.
