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tZERO, a company specializing in technology solutions for capital markets, has announced that its broker-dealer subsidiaries now offer correspondent clearing services for both crypto asset securities and traditional securities to other broker-dealers. This move significantly strengthens tZERO’s institutional infrastructure footprint in both emerging and established financial markets.
What are Correspondent Clearing Services?
Correspondent clearing services allow a broker-dealer to use another, larger broker-dealer (the clearing firm) to handle the back-office functions of trade clearance and settlement. This means that a broker-dealer can execute trades through its own channels but rely on a correspondent clearing firm to manage the intricate process of matching buy and sell orders, ensuring the availability of funds, and facilitating the transfer of securities. This is particularly beneficial for smaller broker-dealers or those lacking the extensive operational infrastructure to self-clear and settle trades.
tZERO’s Offering:
* Dual Asset Support: tZERO is now positioned to provide end-to-end infrastructure for both crypto asset securities and traditional securities. This is significant because many firms may not have the regulatory approval or operational capacity to directly custody crypto asset securities on-chain.
* Institutional Custody: tZERO’s broker-dealer is one of only two in the United States approved to support crypto securities custody. This makes them a key provider of institutional custody to other firms that cannot self-custody these assets.
* Enhanced Interoperability: By offering correspondent clearing, tZERO enables other broker-dealers to connect to its brokerage platform, allowing them to facilitate transactions in crypto asset securities and traditional securities.
* Flexible Custodial Solutions: tZERO’s digital broker-dealer can clear and carry crypto asset securities for correspondent broker-dealers using various custodial wallet infrastructures, including individual investor wallets and omnibus wallets. They also plan to integrate smart contract technologies to automate reporting and distributions.
* Regulatory Compliance: tZERO emphasizes its commitment to operating within a regulated environment, holding a FINRA-member broker-dealer and an SEC-registered alternative trading system (ATS). They view many digital assets as securities under existing legal frameworks and are working to provide compliant solutions in this evolving space.
This expansion of services positions tZERO as a crucial player in bridging the gap between traditional finance and the burgeoning crypto asset market, offering a regulated and robust solution for institutional participation in both.

Video courtesy of CSOB

Video courtesy of CSOB