- tZERO becomes the second firm to receive the Special Purpose Broker-Dealer License in the US.
- The firm plans to enhance the regulatory pathway for blockchain-related firms with the license.
The US regulatory sector has shown persistent evolution this year. While some regulations have posed challenges for crypto advancements, others have aided the industry. Relatedly, in a recent report, tZERO announced that it had received a Special Purpose Broker-Dealer License from regulatory bodies – SEC and FINRA.
According to tZERO’s official announcement, the new license makes the firm a “one-stop shop” for digital asset security issuance. The firm primarily focuses on blockchain-related companies aiding them with regulatory issuance and compliant trading modalities.
It further said that the license would help it advance its long-standing position of providing fully-developed infrastructure for firms that need to mold into a securities-regulated environment. Additionally, the firm aims to secure the top position in enabling blockchain-related services and discussed how the recent licensing will aid them in the process.
tZERO’s CEO, David Goone stated in the Press Release:
“Our special purpose broker-dealer status will enable us to offer safe, secure and regulated broker-dealer digital asset custody and other new and innovative products for issuers, investors and other market participants alike.”
Notably, tZERO is the second firm in the United States to have obtained the license from the SEC and Financial Industry Regulatory Authority (FINRA), after Prometheum. This firm received the Special Purpose Dealer-Broker license in January 2024. This particular firm, in May, caught market attention by launching an Ethereum Custody Service.
How is tZERO Planning to Enhance Blockchain Regulations?
tZERO outlined several issues that digital securities firms faced that they could now resolve with the Dealer-Broker license. The firms limited their technology features, were unable to expand globally, and also faced challenges in securing investors’ digital asset securities, said tZERO.
However, post the Dealer-Broker license, as aforementioned, tZERO plans to enhance investors’ journey towards liquidity and provide a ‘seamless trading environment’. Additionally, the firm’s Vice President stated in his X account that he is looking forward to commercializing the unique asset.
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