tZERO Goes Full Court Press To Improve Security Token Adoption

February 24, 2022
5 min read

tZERO’s joint venture with Boston Security Token Exchange was approved. The deal with BOX Digital Markets includes a rulebook for the first regulated blockchain-enabled national securities exchange facility, designed to improve market quality for new companies and faster settlement and more transparent blockchain data feeds.

The approval was hailed as an “important milestone in establishing a digital infrastructure ecosystem that leverages the benefits of blockchain rails for next-generation capital markets” by tZERO and Boston Security Token Exchange (BSTX).

With a focus on driving innovation, the exchange will give investors the chance to select accelerated settlement for securities listed on BSTX, as supported by the National Securities Clearing Corporation and the Depository Trust Company. Participants will also see proprietary market data to increase transparency and enjoy greater access to trading solutions designed to unlock liquidity.

A previous joint venture between tZERO and BOX Digital led to the first blockchain-integrated and compliant national securities exchange.

This great news was followed by two more events this week that accelerated their trading opportunities in the Security Tokens space.

Blockchain Leader tZERO Announces New CEO and New Funding Round.

In a potent one-two punch for the company, blockchain innovator tZERO announced David Goone, currently serving as the Chief Strategy Officer for the Intercontinental Exchange (ICE), as its new CEO and the completion of a new strategic funding round from both new and current investors. The dual moves and news were designed to further the company’s digital innovation and financial position.

Goone, known for turning ICE into a leader in trading, clearing, and data over the past two-plus decades, will begin his tenure at tZERO in March. Participants in the funding round included NYSE parent company ICE (NYSE: ICE), now a significant tZERO minority shareholder, and original investor Overstock (NASDAQ: OSTK) and Medici Ventures, a fund focused on blockchain.

tZERO runs an SEC-regulated alternative trading system and digital asset broker-dealer to level the playing field in the capital markets. Its digitally enabled marketplace offers investors access to unique private assets, crypto, public equities, and more. In addition, the company recently announced its joint venture with BOX Digital markets to launch the first regulated blockchain-enabled securities exchange in the United States, the Boston Security Token Exchange.

According to Matt Mosman, chair of tZERO’s board and general partner at Pelion Venture Partners, “we are laser-focused on empowering tZERO to grow into its full potential as it continues to lead the space in providing investors with a seamless and holistic way to access all assets.”

Goone joined ICE in 2001, helping to grow the company through his role as Chief Strategy Officer from its initial stages to a Fortune 500 company with more than $7 billion in net revenue in 2021. He serves on the boards of the Depository Trust Clearing Corporation, Options Clearing Corporation, and the National Futures Association.

Blockchain Innovator tZERO Launches Clearance and Settlement Functionality.

Blockchain leader tZERO has launched clearing and settlement functionality for securities transactions through its broker-dealer subsidiary, tZERO ATS. The digital assets company noted that it is a “key milestone for tZERO’s next-generation trading ecosystem” as subsidiaries can enjoy efficiencies in onboarding private securities while also speeding up settlement times on its trading platform.

This model supports current and future private digital securities trading on the tZERO ATS and NMS securities trading on national exchanges. In addition, tZERO plans to add parallel clearing, settlement, and custodial upgrades for digital asset securities soon.

The company’s interim CEO and Chief Legal Officer Alan Konevsky stated that the launch “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.”

The company has been making headlines in recent weeks, announcing Intercontinental Exchange (ICE) Chief Strategy Officer David Goone as its new CEO, completing additional strategic funding round, and moving forward with its joint venture with BOX Digital Markets to launch the nation’s first regulated blockchain-enabled securities exchange.

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