tZERO Group, a leader in technology solutions for capital markets, announces that the full tokenization of its Series-A Preferred Equity Security (TZROP) is complete and, at the time TZROP was fully tokenized, it became the first digital asset security to be custodied by tZERO’s Special Purpose Broker-Dealer, tZERO Digital Asset Securities, one of only two digital securities broker-dealer custodians in the US.

“Today we move forward on our journey of innovation,” said David Goone, tZERO’s CEO. “As we continue to fulfill our vision for TZROP and our trading ecosystem, we will remain steadfast in our commitment to advancing new and innovative technologies in a regulated environment.”

At the time of the full tokenization of TZROP, tZERO also deployed new utility features programmable into the security’s new upgradable smart contract technology. These issuer tools include artificial intelligence (AI) data driven insights relating to TZROP’s ownership structure, transactions and investor base, while maintaining data privacy.

“As one of only two special purpose broker-dealer in the US, the commencement of our digital asset security custodial services is not only meaningful for tZERO, but the entire digital asset industry” states Alan Konevsky, Executive Vice President and Chief Legal & Corporate Affairs Officer of tZERO. “We will work to make a positive use case for this regulatory sandbox, while working with regulators, such as the SEC’s new crypto task force, so that positive updates can be made to the permitted activities of special purpose broker-dealers.”

tZERO plans to leverage the new upgradable technology powering TZROP to bring additional utility features to its investors in the future, which may include individual customer custodial wallets, on-chain KYC verification and accreditation or automated on-chain corporate actions, without sacrificing data privacy standards.

Source: tZERO