tZERO Group, Inc., a blockchain-powered multi-asset infrastructure firm, announced today the launch of tZERO Capital Partners, LLC, an exempt reporting adviser authorized to provide advisory services to private funds. The new entity will focus on managing private funds structured under Sections 3(c)(1) or 3(c)(7) of the Investment Company Act of 1940, available exclusively to accredited investors and qualified clients. This move adds a regulated advisory pathway within the broader tZERO ecosystem, supporting institutional-grade private market strategies.
According to Alan Konevsky, Chief Executive Officer of tZERO, the launch strengthens the company's 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," Konevsky said.
The development is part of tZERO's Tokenize + Trade + Connect strategy, which aims to provide infrastructure 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, emphasized that the advisory capability, combined with existing broker-dealer, ATS, and digital asset custody authorizations, allows the company to offer a more complete suite of services—from private fund formation and management to trading and custody—all within an end-to-end platform.
tZERO Capital Partners will operate as an exempt reporting adviser, meaning it is registered with state securities authorities but not with the SEC, allowing it to advise private funds while complying with regulatory requirements. The service targets funds that rely on exemptions from registration under the Investment Company Act, such as those limited to accredited investors or qualified purchasers. This provides a regulated pathway for clients seeking exposure to private markets through tokenized assets.
The launch adds to tZERO's existing regulatory authorizations, which include broker-dealer operations, an alternative trading system (ATS), and digital asset custody. By integrating advisory services, tZERO aims to create a seamless experience for fund managers and investors, from capital raising and fund administration to secondary trading and custody. The company's infrastructure is designed to support the entire lifecycle of tokenized securities, including private placements and liquidity events.
This announcement comes as the digital asset industry continues to evolve, with increasing demand for regulated solutions that bridge traditional finance and blockchain technology. tZERO's expansion into advisory services positions it to capture a growing market for tokenized private funds, which offer benefits such as fractional ownership, programmability, and 24/7 trading. However, the company notes in its investor notice that digital asset securities involve substantial risks, including potential lack of liquidity, price volatility, and loss of principal.
For more information about tZERO and its services, visit the company's website.
