tZERO ATS Successfully Launches Clearance & Settlement Functionality for Securities Transactions

Rhea-AI Summary

On February 22, 2022, tZERO, a leader in blockchain technology, announced the successful launch of its clearing and settlement support for securities transactions through its broker-dealer subsidiary, tZERO ATS. This advancement allows faster onboarding of private securities and enhances transaction settlement times. The model supports both private digital securities and NMS securities. tZERO aims to innovate the trading infrastructure for digital assets, improving operational efficiency and creating value for stakeholders. Interim CEO Alan Konevsky emphasizes increased liquidity in private capital markets.

Positive

• Successful launch of clearing and settlement support for securities transactions on February 22, 2022.
• Accelerates onboarding of new private securities, enhancing investment variety and liquidity.
• Supports both private digital securities and public NMS securities for broader trading capabilities.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- tZERO, a leader in blockchain innovation and liquidity for digital assets, announced today that its broker-dealer subsidiary, tZERO ATS, successfully launched support for clearing and settlement securities transactions for itself and its broker-dealer affiliates on February 22, 2022, a key milestone for tZERO’s next-generation trading ecosystem. tZERO’s broker-dealer subsidiaries are now able to independently onboard additional private securities at a faster pace, accelerate the settlement times of transactions on its private security trading platform, and improve the user experience in transferring cash and securities to and from third-party platforms.

tZERO Interim Chief Executive Officer and Chief Legal Officer Alan Konevsky stated, “Yesterday’s launch was successful and will significantly increase the velocity at which we can onboard new assets to the tZERO ATS, giving customers a greater variety of investment opportunities and enabling increased liquidity for private capital markets.”

This clearing and custody model supports the current and future private digital securities that trade on the tZERO ATS, which are uncertificated securities with focused blockchain functionality to increase transparency. It will also support NMS securities, which are public securities that trade on national exchanges.

In addition to supporting a traditional broker-dealer custody, tZERO expects, subject to regulatory approval, to implement parallel clearing, settlement, and custodial solutions to support digital asset securities, which are securities issued and settled on a blockchain, to its platform. This solution will initially be implemented through user-directed settlement in partnership with a custodian and, later, in conjunction and in accordance with the Securities and Exchange Commission (SEC)’s statement that outlined how broker-dealers can engage with digital asset securities, including maintaining custody of these assets and settling on-chain without a clearing firm or a custodian.

“tZERO is committed to transforming the current trading infrastructure of digital assets to support next-generation capital markets and innovating the ways these assets can be custodied and transferred. Being able to support next-generation infrastructure and settlement and clearance systems in place today will propel operational efficiencies and bring value to both the company and its stakeholders,” concluded Konevsky.

tZERO is a technology firm with the goal of democratizing access to private capital markets. tZERO brings together issuers and financial firms seeking a transparent, automated, digitally enabled marketplace and investors seeking access to unique private assets, public equities, cryptocurrencies, and other digital assets, including non-fungible tokens. For more information, visit https://www.tzero.com/.

Investor Notice

Investors should note that trading securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, no assurance of liquidity, which could impact the price and ability to sell, and possible loss of principal invested. Further, an investment in a single security could mean lack of diversification and, consequently, higher risk. Potential investors are urged to consult a professional adviser regarding any economic, tax, legal or other consequences of trading any securities as described herein.

No Offer, Solicitation, Investment Advice or Recommendations

This release is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by tZERO or any of its affiliates, subsidiaries, officers, directors or employees. No reference to any specific security constitutes a recommendation to buy, sell, or hold that security or any other security. Nothing in this release shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this release constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this release should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this release, we have not taken into account the investment needs, objectives, and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors. Any views expressed in this release by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change. All information is subject to possible corrections. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

Forward-Looking Statements

This release contains forward-looking statements. In addition, from time to time, tZERO, its subsidiaries, or its representatives may make forward-looking statements orally or in writing. These forward-looking statements are based on expectations and projections about future events, which are derived from currently available information. Such forward-looking statements relate to future events or future performance, including financial performance and projections; growth in revenue and earnings; and business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including, without limitation: the ability of tZERO and its subsidiaries to change the direction; tZERO’s ability to keep pace with new technology and changing market needs; and competition. These and other factors may cause actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or their respective representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions. tZERO, its subsidiaries, and its representatives are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this release and other statements made from time to time by tZERO, its subsidiaries or its representatives might not occur.

About tZERO

tZERO Group, Inc. (tZERO) and its broker-dealer subsidiaries provide an innovative liquidity platform for private companies and assets. We offer institutional-grade solutions for issuers looking to digitize their capital table through blockchain technology, and trade on a regulated alternative trading system. tZERO, through its broker-dealer subsidiaries, democratizes access to private assets by providing a simple, automated, and efficient trading venue to broker-dealers, institutions, and investors. tZERO is a portfolio company of Medici Ventures, L.P., a blockchain-focused fund. The general partner of that fund is an entity affiliated with Pelion Venture Partners. Overstock.com, Inc. (NASDAQ:OSTK) is a limited partner of Medici Ventures and direct investor in tZERO. For more information on tZERO, please visit https://www.tzero.com/.

tZERO is not a registered broker-dealer, funding portal, underwriter, investment bank, investment adviser or investment manager, and is not providing brokerage, investment banking or underwriting services, recommendations or investment advice to any person, and does not provide any brokerage services. tZERO takes no part in the negotiation or execution of secondary market transactions for the purchase or sale of securities and at no time has possession of investor funds or securities in connection with such transactions.

About tZERO ATS

tZERO ATS, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. More information about tZERO ATS may be found at https://brokercheck.finra.org/. Digital securities that trade on tZERO ATS are conventional uncertificated securities. Ownership of such securities is reflected on the traditional books and records of regulated market participants. The term "digital" or “digitization” refers to the blockchain technology elements of a security that are intended to enhance investor experience through added transparency.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220223005259/en/

tZERO

Alexandra Sotiropoulos, +1-347-293-1416

asotiropoulos@tzero.com

Source: tZERO

FAQ

What innovation did tZERO announce on February 22, 2022, regarding stock trading?

tZERO announced it successfully launched support for clearing and settlement of securities transactions through its subsidiary, tZERO ATS.

How will tZERO's new capabilities impact private capital markets?

The new capabilities will increase the speed of onboarding new assets and enhance liquidity in private capital markets.

What types of securities can be supported by tZERO's new model?

The model supports both private digital securities and public NMS securities.

What is the significance of tZERO's clearing and settlement model for investors?

It enhances operational efficiencies and increases the range of investment opportunities for investors.

Who is the interim CEO of tZERO?

The interim CEO of tZERO is Alan Konevsky.