tZERO Enables On-Chain Custody and Settlement Through Self-Hosted Wallets in TradFi-DeFi Integration Move

tZERO Group, Inc. announced that its broker-dealer subsidiary's alternative trading system can now facilitate trading of crypto asset securities directly custodied on-chain by customers in their own self-hosted wallets, with transactions settled directly by customers on-chain. This development represents a critical advancement in tZERO's convergence strategy, creating additional bridges between traditional finance and the broader decentralized finance ecosystem for customers and API partners. By supporting integrated self-hosted wallets, tZERO enables customers to interact with its regulated ATS without relinquishing control of their private keys or assets to intermediary custody services.

The company, as one of only two broker-dealers currently custodying securities directly on-chain in its own wallets, will continue offering omnibus or individual wallet custody alongside self-hosted wallet connectivity for investors preferring broker-dealer custody for operational, regulatory, or other reasons. CEO Alan Konevsky stated that tZERO is becoming connective tissue for market participants across all vectors of Web3, providing optionality that the market demands while pointing toward compliant and transparent marketplaces that rely on self-regulating technology and asset sovereignty. These services will be available to institutional API partners who choose tZERO's infrastructure rather than building their own systems, representing significant operational efficiency even in more permissive regulatory environments.

A central pillar of this new capability is custodial optionality, with tZERO's brokerage platform now supporting a hybrid approach that recognizes different market participants have varying preferences. Customers can choose between directly custodying their own assets on-chain using self-hosted wallets or utilizing broker-dealer custody, allowing seamless movement between traditional finance and decentralized ecosystems. Chief Legal Officer Vanessa Savino emphasized that regulatory clearance for interoperability with user self-hosted wallets promotes crypto asset programmability, portability, and transparency within tZERO's brokerage ecosystem while demonstrating commitment to advancing innovation responsibly through regulatory collaboration.

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 opens new pathways to DeFi connectivity and interoperability for the broader marketplace, positioning tZERO at the forefront of technology-based financial services evolution. The company's approach addresses growing demand for asset sovereignty while maintaining regulatory compliance, potentially transforming how institutional and retail investors access digital asset markets. More information about tZERO Digital Asset Securities may be found on FINRA's BrokerCheck, while additional details about tZERO Securities are available through the same regulatory portal.