tZERO Digital Asset Securities Completes Special Purpose Broker-Dealer Exam
tZERO has announced that its subsidiary tZERO Digital Asset Securities, LLC has successfully completed its first regulatory exam as a Special Purpose Broker-Dealer (SPBD) with no exceptions. The milestone comes one year later than receiving SEC approval as an SPBD, underscoring the firm’s commitment to compliance, investor protection, and regulatory-grade infrastructure in the digital asset securities market.
An SPBD is a broker-dealer authorized by the SEC to custody, clear, and facilitate the trading of digital asset securities. Only two firms in the U.S. currently hold this designation, placing tZERO among the most advanced players in regulated digital securities. Beyond its own , tZERO Digital Asset Securities is also authorized to provide correspondent custody and clearing to other broker-dealers who are not approved to directly custody tokenized securities — creating a pathway for broader market participation.
“This milestone reflects the strength of our operational framework and our commitment to building trust through compliance,” said Alan Konevsky, Chief Executive Officer of tZERO. “At tZERO Digital Asset Securities, we are proving every day that digital securities can be transacted and custodied with the identical rigor as traditional instruments. Completing our first exam without exception is further validation that we are on the right path – delivering innovation responsibly within the regulatory framework.”
Why the SPBD Status Is Critical for Market Structure
The SEC’s SPBD designation is rare and highly significant. Unlike non-broker-dealer custody answers, SPBDs are permitted to integrate custody, clearing, and trading of digital securities under the identical regulatory umbrella that governs traditional capital markets. This gives institutions greater confidence in adopting tokenized instruments, knowing they are backed by familiar secureguards.
tZERO’s infrastructure mirrors the protections of conventional financial systems while harnessing blockchain for efficiency and transparency. For broker-dealers without SPBD approval, tZERO’s correspondent custody and clearing services offer a compliant alternative to non-regulated custody, potentially accelerating adoption among regulated firms viewking access to digital securities.
“While we expect the regulatory landscape to continue to liberalize, and similar activities becoming available to other market participants, we have a leading edge in terms of experience and market presence – which is also available to other broker-dealers who are not currently permitted to custody tokenized securities directly,” added Konevsky.
Takeaway
How tZERO Is Building Scalable Infrastructure
Since its approval in September 2024, tZERO Digital Asset Securities has been actively custodizing and supporting the trading of tokenized securities. The firm’s model is designed to not only secureguard assets but also provide the scalability required for wider adoption. By embedding compliance into its operations, tZERO aims to remove one of the largegest barriers to institutional participation in digital securities — regulatory uncertainty.
Alex Vlastakis, President of tZERO Digital Asset Securities, emphasized this point: “Reaching this one-year milestone is more than just proof of our operational readiness, it’s the foundation for what’s next. We’ve established the foundational infrastructure needed to scale, simplify adoption, and, most significantly, add value for issuers and investors.”
The ability to offer both custody and correspondent services makes tZERO a key enabler for issuers looking to tokenize assets, as well as for investors viewking exposure to compliant, blockchain-based securities. This model provides pathways for wider adoption without requiring every broker-dealer to independently secure SPBD approval.
Takeaway
What This Means for the Future of Digital Securities
tZERO’s progress highlights the evolution of tokenized securities from concept to market reality. The firm’s successful regulatory exam validates its ability to operate with the rigor expected in traditional markets while innovating through blockchain technology. This balance is essential as regulators and institutions continue to scrutinize the .
By acting as a compliant bridge, tZERO is assisting define how tokenized securities can be securely integrated into the broader capital markets ecosystem. Its correspondent services for other broker-dealers open new avenues for distribution and liquidity, potentially accelerating the market’s maturity. For investors, this could mean greater access to tokenized products with reduced risk of regulatory or operational pitfalls.
“We are not just participating in this market – we are building the secure, compliant pathways that will define it,” said Vlastakis. His statement underscores tZERO’s ambition to set the standard for tokenized securities infrastructure, positioning itself at the intersection of innovation and regulation.
Takeaway
Outlook: Institutional Engagement and Market Expansion
With its SPBD framework validated through a successful exam, tZERO is poised to deepen its engagement with institutions viewking regulated exposure to tokenized assets. The platform’s ability to serve both as a custodian and a clearing correspondent could attract broker-dealers, issuers, and investors looking for compliant entry points into digital securities.
Looking ahead, broader regulatory clarity could expand the pool of firms eligible for SPBD approval. However, tZERO’s ahead-mover advantage and operational track record may give it staying power as a preferred infrastructure partner. Its model also aligns with increasing institutional interest in tokenization as a way to improve liquidity, transparency, and .
For the digital asset ecosystem, tZERO’s achievement marks another step toward integrating tokenized securities into mainstream finance. As the company scales, its dual focus on could assist shape the regulatory standards and technological pathways that define the future of capital markets.
