In addition, FINRA is allowing tZERO Securities to sell corporate debt securities.
Blockchain fintech provider tZERO Group is petitioning the U.S. derivatives regulator, the Commodity Futures Trading Commission (CFTC), to become both a Derivatives Clearing Organization (DCO) and a Designated Contract Market (DCM). The move aims to position tZERO as a one-stop shop for compliant issuance, regulatory oversight, trading, and clearing within the digital asset ecosystem.
A DCO is a clearinghouse regulated by the CFTC that handles the clearing and settlement of derivative transactions, such as futures, options, and swaps. A DCM, on the other hand, is a CFTC-regulated exchange authorized to list and facilitate trading of futures and options contracts. It also ensures transparent price discovery and fair market access.
According to tZERO officials, receiving the CFTC’s approval would allow the company to better manage cryptocurrencies and other non-security digital assets, especially in response to a recent White House directive expanding the CFTC’s oversight authority in this space. The initiative also supports the ongoing industry shift toward self-regulating, digitally native financial products.
tZERO is further looking to broaden its product suite by offering predictive markets, futures, and options tied to both traditional and digital assets. The firm’s ultimate goal is to attract institutional investors with customizable derivatives instruments.
In related news, tZERO Group officials report that the FINRA member broker-dealer subsidiary, tZERO Securities, LLC, has been approved “to expand its business activities to include the sale of corporate debt securities.”
The FINRA authorization enables tZERO’s alternative trading system (ATS) “to facilitate secondary trading in this additional asset class. This milestone reinforces the firm’s role as a leader in modernizing how capital is raised, traded, and owned. tZERO already holds approvals to facilitate primary offerings of corporate debt, as well as to operate its primary offering business and ATS for corporate equity securities, including the online sale and resale of OTC equities to retail investors,” according to tZERO officials.
Alan Konevsky
This is a significant step for tZERO and its broker-dealer-led platform for “offerings, trading and custody of tokenized securities in the U.S.,” says Alan Konevsky, CEO of tZERO Group, in a prepared statement. “Adding corporate debt securities to our platform expands investment opportunities for clients and reinforces our vision of a comprehensive, cross-asset marketplace powered by blockchain, as well as to develop tokenized debt and structured products treated as debt tailored to specific investor demand.”
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