Overstock-Backed tZero Secures Broker-Dealer License From FINRA

cryptonews.com:

Tanzeel Akhtar has been covering the cryptocurrency and blockchain sector since 2015. She has written for the Wall Street Journal, Bloomberg, CoinDesk and Bitcoin Magazine.

tZero, a blockchain-focused firm backed by Overstock, said it has received approval from the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to operate as a Special Purpose Broker-Dealer for digital asset securities custody.

This makes tZero one of only two firms in the U.S. with this type of regulated broker-dealer license. This will allow the firm to provide secure and compliant custody for digital asset securities.

U.S. regulations around digital asset custody require firms to obtain specific licenses, such as the Special Purpose Broker-Dealer designation, to securely hold and manage digital securities in compliance with SEC and FINRA guidelines.

Prometheum Inc. received its broker-dealer license in January this year and was the first firm to achieve this status. Prometheum is touted by the SEC as a model to emulate for industry compliance.

tZERO said it follows as the second firm to gain approval from the SEC and FINRA, and together, the two firms represent a new wave of regulatory clarity in the U.S. for digital assets.

The firm said, previously, issuers had to either limit blockchain features or resort to complex regulatory workarounds. Now, they can work with tZERO to fully leverage blockchain infrastructure without having to compromise on regulatory compliance.

David Goone, CEO of tZERO, sees this approval as a turning point for the company and the industry at large. “We have been steadfast in our belief that blockchain technology is the next-generation proponent of powering capital markets,” he