Uphold files application to offer tokenized securities and partners with tZERO on infrastructure services

Uphold, the modern infrastructure provider for on-chain finance, has filed an application with FINRA (the regulatory authority overseeing US securities brokerage firms and brokers) to offer tokenized securities to US customers.

If successful in its application, Uphold plans to make tokenized shares in private companies available on its consumer app in late 2026.

To bring tokenised security services to market, Uphold is partnering with tZERO, a leading innovator in blockchain-powered multi-asset infrastructure.

The integration of tZERO’s services and solutions into the Uphold app will provide trading, clearing and custody of tokenized securities for Uphold customers. 

Simon McLoughlin, CEO of Uphold, said:

Uphold’s partnership with tZERO, one of only two Special Purpose Broker-Dealers in the US, delivers the following benefits:

• Secure custody of tokenized securities – providing on-chain custody and clearing of tokenized securities, tZERO enables Uphold to offer blockchain-based investments within a regulated broker-dealer-led operations and cost structure.
• Streamlined clearing and cash management – the partnership provides regulated clearing, settlement, and cash management services for tokenised securities, improving efficiency and reducing friction.

“As tokenized markets mature, institutions need infrastructure that is both on-chain and fully regulated,” said Alan Konevsky, Chief Executive Officer of tZERO.

“Anchoring B2B2C partners like Uphold is part of our announced strategy to drive demand on our platform through partnerships and institutional connectivity,” added Alex Vlastakis, President of tZERO Digital Asset Securities.

tZERO is a pioneer in blockchain and tokenization innovation for financial markets, delivering institutional-grade technology and a regulated marketplace for tokenized securities and other assets.

tZERO empowers issuers to digitize and manage their ownership records, while giving investors, institutions, and broker-dealers greater access to private assets.

By combining compliance, security, and automation, tZERO is redefining how capital is raised, traded, and owned in the Web3 era.

About Uphold 

Uphold is a financial technology company that believes on-chain services are the future of finance.

It provides modern infrastructure for on-chain payments, banking and investments.

Offering Consumer Services, Business Services and Institutional Trading, Uphold makes financial services easy and trustworthy for millions of customers in more than 140 countries. 

Uphold integrates with more than 30 trading venues, including centralized and decentralized exchanges, to deliver superior liquidity, resilience and optimal execution.

Uphold never loans out customer assets and is always 100% reserved. 

The company pioneered radical transparency and uniquely publishes its assets and liabilities every 30 seconds on a public website (https://uphold.com/en-us/transparency).

Uphold is regulated in the U.S. by FinCen and State regulators; and is registered in the UK with the FCA and in Europe with the Financial Crime Investigation Service under the Ministry of the Interior of the Republic of Lithuania.

Securities products and services are offered by Uphold Securities, Inc., a broker-dealer registered with the SEC and a member of FINRA and SIPC.

To learn more about Uphold’s products and services, visit uphold.com.

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 make such equity available for trading on an 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. All technology services are offered through tZERO Technologies, LLC. For more information, please visit our website.

About tZERO Digital Asset Securities

tZERO Digital Asset Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. It is the broker-dealer custodian of all digital asset securities offered on tZERO’s online brokerage platform.

It operates in accordance with the SEC’s statement, dated December 23, 2020, regarding the Custody of Digital Asset Securities by Special Purpose Broker-Dealers.

Digital asset securities may not be “securities” as defined under the Securities Investor Protection Act (SIPA)-and in particular, digital asset securities that are “investment contracts” under the Howey test but are not registered with the Securities and Exchange Commission are excluded from SIPA’s definition of “securities”-and thus the protections afforded to securities customers under SIPA may not apply.

More information about tZERO Digital Asset Securities may be found on FINRA’s BrokerCheck.

About tZERO Securities

tZERO Securities, LLC is a broker-dealer registered with the SEC and a member of FINRA and SIPC. It is the operator of the tZERO Securities ATS. More information about tZERO Securities may be found on FINRA’s BrokerCheck.

Investor Notice

Digital asset securities or tokenized securities, as well as any particular investment, may not be suitable or appropriate for everyone.

Investors should note that investing or trading in securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, and no assurance of liquidity which could impact their price and investor’s ability to sell, and possible loss of principal invested.

There is always the potential of losing money when you invest in securities. There are also unique risks specific to digital asset securities, including, without limitation, fraud, manipulation, theft, and loss.

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 is 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,” or “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; performance of individual transactions; regulatory developments and matters; 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.

Contacts

Senior PR ManagerLauren BukoskeySerotoninlauren@serotonin.coHead of Marketing & CommunicationsJulie RostZEROjros@tzero.