tZERO Group, Inc., a leader in blockchain-powered multi-asset infrastructure, announced the launch of tZERO Capital Partners, LLC, an exempt reporting adviser authorized to provide advisory services to private funds. The new unit will target funds structured under Sections 3(c)(1) or 3(c)(7) of the Investment Company Act of 1940, serving accredited investors and qualified clients. This move adds a regulated advisory pathway to tZERO's existing broker-dealer, alternative trading system (ATS), and digital asset custody capabilities, furthering the company's Tokenize + Trade + Connect strategy.
Alan Konevsky, Chief Executive Officer of tZERO, stated, "This milestone strengthens our ability to support institutional-grade private fund strategies within a regulated framework. Advisory, alongside our broker-dealer, ATS and digital asset custody capabilities, strengthen our ability to support tokenized fund structures and next-generation workflows within a regulated framework and further bolsters our industry leading end-to-end integrated infrastructure." The development is expected to bolster the infrastructure needed for digitally native private fund vehicles and institutional-grade tokenized investment products across emerging on-chain capital markets.
Vanessa Savino, EVP and Chief Legal Officer of tZERO, added, "Combined with our broker-dealer, ATS, and digital asset custody regulatory authorizations, this advisory capability allows us to offer clients a more complete suite of services – from private fund formation and management to trading and custody – all within our end-to-end platform." tZERO Capital Partners will operate as an exempt reporting adviser, a category that requires registration with state securities authorities but not with the SEC, though it must still comply with certain regulatory requirements.
The launch aligns with tZERO's broader strategy to provide a comprehensive platform for digital asset securities. The company already operates a broker-dealer and an ATS, and offers digital asset custody services. By adding advisory services, tZERO aims to attract fund managers seeking to leverage blockchain technology for tokenized fund structures. The move also underscores the growing intersection of traditional finance and blockchain, as institutional investors increasingly explore digital assets.
tZERO's press release emphasized that the advisory service is for informational purposes only and does not constitute an offer to sell or a solicitation to buy any security. It also included forward-looking statements regarding the potential impact of the new service. The company's website provides additional information on its services and technology.
