The Albany Gazette - tZERO’s Special Purpose Broker Dealer Further Expands its Footprint and Can Now Offer Individual Custodial Wallets to Issuers and Investors

SALT LAKE CITY, UT / ACCESS Newswire / April 28, 2025 / tZERO Group Inc., a leader in technology solutions for capital markets, announces that its Special Purpose Broker-Dealer, tZERO Digital Asset Securities, one of only two digital securities broker-dealer custodians in the US, is now able to custody digital asset securities in individual custodial wallets controlled by the special purpose broker-dealer, in addition to the omnibus custodial wallet structure it currently operates likewise controlled by it. Issuers of digital asset securities can offer investors end-to-end digital securities solution to investors, including primary capital raising and access to secondary liquidity on a regulated marketplace operated by tZERO's Alternative Trading System, with special purpose broker-dealer custody. Issuers will be able to choose whether the shares will be available in a individual or omnibus wallets maintained by tZERO's special purpose broker-dealer:

• setting the degree of publicly-viewable transparency into the capital structure at the holder level;

• facilitating access to future utility features through upgradable smart contracts (such as those underpinning tZERO's TZROP preferred security),

• providing enhanced on-chain issuer analytics (supported by AI) into user base and behavior, and

• in the future, subject to regulatory agreement, facilitating interoperability with non-tZERO broker-dealers who wish to have their customers access tZERO's special purpose broker dealer custody, thereby potentially enhancing scale and liquidity on the platform.

"We are happy to be able to take this next step forward on our journey of responsible innovation," said David Goone, tZERO's CEO. "The ability to offer individual custodial wallets will enable our technology team to add new utility features to our tokenization offering in the future - which is critical to differentiating the value proposition of tokenized securities and our ability to support third-party broker dealers in the future under the current regime for trading digital securities on ATSs."

This approval follows the other previously announced expansion of tZERO Digital Asset Securities' footprint through ability to facilitate OTC transactions in digital asset securities that are not custodied by it.

"Programmable securities that do for value what internet did for data and voice are the next step on the evolution of the securities industry. Unlocking smart contract functionality is critical to proving tokenized assets as a product class that delivers real benefits to issuer and investor users and not just a label. Individual wallets are a key to that. This expansion of our special purpose broker-dealer's permissible business activities is therefore a significant milestone, even if its yield will play out well into the coming months and years as we continue to evolve this construct, including concepts regarding user sovereignty over their wallets and self-regulating nature of tokenized securities." said Alan Konevsky, Executive Vice President and Chief Legal & Corporate Affairs Officer of tZERO. "We are grateful to our regulators and the constructive relationship we developed over the last several years."

Issuers interested in tZERO's tokenization or digital asset security custodial services should email [email protected] and ask to be connected to the appropriate tZERO representative.

About tZERO

tZERO Group, Inc. (tZERO) and its broker-dealer subsidiaries provide an innovative liquidity platform for private companies and assets. We offer institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology, and make such equity available for trading on an alternative trading system. tZERO, through its broker-dealer subsidiaries, democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors. All technology services are offered through tZERO Technologies, LLC. For more information, please visit our website.

About tZERO Digital Asset Securities

tZERO Digital Asset Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. It is the broker-dealer custodian of all digital asset securities offered on tZERO's online brokerage platform. It operates in accordance with the SEC's statement, dated December 23, 2020, regarding the Custody of Digital Asset Securities by Special Purpose Broker-Dealers. Digital asset securities may not be "securities" as defined under the Securities Investor Protection Act (SIPA)-and in particular, digital asset securities that are "investment contracts" under the Howey test but are not registered with the Securities and Exchange Commission are excluded from SIPA's definition of "securities"-and thus the protections afforded to securities customers under SIPA may not apply. More information about tZERO Digital Asset Securities may be found on FINRA's BrokerCheck.

About tZERO Securities

tZERO Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. It is the operator of the tZERO Securities ATS. More information about tZERO Securities may be found on FINRA's BrokerCheck.

Investor Notice

Digital asset securities, as well as any particular investment, may not be suitable or appropriate for everyone. Investors should note that investing or trading in securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, and no assurance of liquidity which could impact their price and investor's ability to sell, and possible loss of principal invested. There is always the potential of losing money when you invest in securities. There are also unique risks specific to digital asset securities, including, without limitation, fraud, manipulation, theft, and loss. Please see our disclosure library for more information.

No Offer, Solicitation, Investment Advice or Recommendations

This release is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by tZERO or any of its affiliates, subsidiaries, officers, directors or employees. No reference to any specific security constitutes a recommendation to buy, sell, or hold that security or any other security. Nothing in this release shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this release constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this release should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this release, we have not taken into account the investment needs, objectives, and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this release by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible corrections. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

Forward-Looking Statements

This release contains forward-looking statements. In addition, from time to time, tZERO, its subsidiaries, or its representatives may make forward-looking statements orally or in writing. These forward-looking statements are based on expectations and projections about future events, which is derived from currently available information. Such forward-looking statements relate to future events or future performance, including financial performance and projections; growth in revenue and earnings; and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as "may," "should," "expects," "anticipates," "contemplates," "estimates," "believes," "plans," "projected," "predicts," "potential," or "hopes" or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including, without limitation: the ability of tZERO and its subsidiaries to change the direction; tZERO's ability to keep pace with new technology and changing market needs; performance of individual transactions; regulatory developments and matters; and competition. These and other factors may cause actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or their respective representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions. tZERO, its subsidiaries, and its representatives are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or its representatives might not occur.

Contacts

tZERO
[email protected]

SOURCE: tZERO Group, Inc

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(W.Walker--TAG)