tZERO has been officially approved to operate as a fully licensed cryptocurrency brokerage firm in the United States, becoming the second company to achieve this status after Prometheum. tZERO is set to launch its digital asset security services in early 2025, starting with its Series A equity, TZROP.
tZERO gains broker-dealer status under SEC and FINRA approval
tZERO is now recognized as a fully registered US broker-dealer, acquiring a new special purpose status. The firm has received regulatory approval from the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) to take custody of customers’ digital assets securities.
This new license will allow tZERO, already registered as an alternative trading system (ATS), to offer custody, clearance, and settlement services in one integrated platform.
tZERO chief legal and corporate affairs officer Alan Konevsky also commented, saying they aim to use this opportunity to illustrate how clear regulatory frameworks can spur innovation, result in novel products, and enable the commercialization of a range of traditional and real-world assets for the digital asset industry.
The crypto firm also revealed it planned to roll out services for various assets, such as private securities, securitized real estate, art, and sports assets.
tZERO’s approval strengthens pro-crypto regulation
Prometheum was the only SEC-approved crypto platform for over a year, receiving its special purpose broker deal status in May 2023. FINRA also joined the SEC and approved Prometheum at the year’s start.
The crypto firm initially classified Ether assets as securities before expanding its digital asset securities offerings last month to include UNI and ARB on its platform. Prometheum’s CEO, Benjamin Kaplan, expressed plans to further broaden the platform’s custody services and, eventually, trading capabilities to support a variety of digital assets, including debt instruments, equities, ETFs, mutual funds, options, money market funds, and other investment contract products issued and traded on a blockchain.
tZERO’s recent registration adds to the pro-crypto regulatory supporters’ list, backing up Prometheum.
