tZERO Group, Inc., a blockchain-powered multi-asset infrastructure provider, announced today that its alternative trading system (ATS) operated by its broker-dealer subsidiary can now facilitate trading of crypto asset securities that are directly custodied on-chain by customers in their own self-hosted wallets. Transactions will be settled directly by customers on-chain, marking a significant step in tZERO's convergence strategy between traditional finance (TradFi) and decentralized finance (DeFi).
This capability allows customers to interact with tZERO's regulated ATS without relinquishing control of their private keys or assets to a middleman custodian. Previously, tZERO was one of only two broker-dealers custodying securities directly on-chain in its own wallets. Now, it offers omnibus or individual wallet custody alongside self-hosted wallet connectivity for investors who prefer broker-dealer custody for operational or regulatory reasons.
Alan Konevsky, CEO of tZERO, stated, "We are fast becoming the connective tissue for market participants across all vectors of Web3. By enabling custody and settlement via self-hosted wallets, we are providing the optionality that the market demands while pointing at the endstate of this revolution - compliant and transparent marketplaces that rely on self-regulating technology and asset sovereignty." Konevsky added that these services will be available to institutional API partners who choose to use tZERO's infrastructure instead of building their own.
A central pillar of this feature is custodial optionality, recognizing varying preferences among market participants. Customers can choose to directly custody their assets on-chain using self-hosted wallets or opt for broker-dealer custody, enabling seamless movement between TradFi and the decentralized ecosystem.
Vanessa Savino, Chief Legal Officer of tZERO, commented, "With this new capability, we continue to demonstrate our commitment to advancing innovation in a responsible manner, while working with regulators. Regulatory clearance to be interoperable with user self-hosted wallets promotes crypto asset programmability, portability, and transparency in our brokerage ecosystem."
tZERO plans to integrate key management and wallet infrastructure providers in the first half of 2026 to support secure, compliant settlement workflows involving self-hosted wallets. This development is expected to drive the adoption of self-regulating technology-based financial services.
For more information, visit tZERO's website. tZERO Digital Asset Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC.
