tZERO Broker-Dealer Subsidiary Achieves Regulatory Milestone as Fully Operational Tokenized Security Custodian

tZERO Group, Inc. announced that its subsidiary, tZERO Digital Asset Securities, LLC, has reached a significant milestone in its role as a Special Purpose Broker-Dealer permitted to custody tokenized securities. One year after securing SPBD approval, the firm has successfully completed its first regulatory exam without exception, demonstrating tZERO's commitment to compliance, transparency, and investor protection as it advances the digital asset securities market.

An SPBD is an SEC-registered broker-dealer authorized to custody, clear and facilitate trading in digital asset securities. tZERO Digital Asset Securities is one of only two firms nationwide to hold this unique status. The company is also approved to offer correspondent custody and clearing services to other broker-dealers who lack this approval, providing an effective alternative to non-broker-dealer-led custody for digital asset securities.

Since its designation, the company has provided custody, clearing, and trading of tokenized securities through infrastructure that mirrors the safeguards of traditional capital markets while leveraging blockchain technology to increase efficiency and transparency. This unique status underscores tZERO's leadership in building trusted, regulated infrastructure for digital assets.

Alan Konevsky, Chief Executive Officer of tZERO, stated that this milestone reflects the strength of their operational framework and commitment to building trust through compliance. He emphasized that digital securities can be transacted and custodied with the same rigor as traditional instruments, and completing the first exam without exception validates their approach to delivering innovation responsibly within the regulatory framework. More information about tZERO Digital Asset Securities may be found on FINRA's BrokerCheck.

Alex Vlastakis, President of tZERO Digital Asset Securities, added that reaching this one-year milestone represents more than just proof of operational readiness—it establishes the foundational infrastructure needed to scale, simplify adoption, and add value for issuers and investors. The company is building secure, compliant pathways that will define the digital asset securities market.

Since launching in September 2024, tZERO Digital Asset Securities has actively custodied and supported tokenized securities trading. This achievement highlights its role in bridging blockchain innovation with regulatory standards and advancing tZERO's strategic priorities of building trusted partnerships, expanding multi-asset capabilities, and driving transparency and institutional engagement across global markets. The company operates in accordance with the SEC's statement regarding the Custody of Digital Asset Securities by Special Purpose Broker-Dealers, which can be referenced through regulatory documentation available at SEC.gov.