tZERO patented ‘Crypto Integration Platform’
tZERO received a patent for a “crypto integration platform” for trading digital assets. The document describes a system that would be able to receive orders to trade “digital transactional items” — such as securities, tokens, digital shares, cash equivalents and digital assets — from broker-dealers and then translate the orders into crypto orders on a digital exchange. The platform reportedly aggregates various market data from cryptocurrency exchanges and “locate[s] the best price in the crypto market for the digital asset or liability involved in the transaction.”
Before matching orders, the system purportedly secures the digital transaction items to be traded and cryptographically signs the transactions. The system subsequently verifies the availability of the funds and digital assets, and clears and settles the transaction.
tZERO hopes it’s platform will serve as a bridge between legacy trading systems and crypto exchanges. Very important that ‘Crypto Integration Platform’ provides an interface between legacy trading systems and crypto exchanges that trade digital transactional items. In doing so, the Crypto Integration Platform takes a protocol for trading and communication between broker-dealers, Alternative Trading Systems ("ATS"), and exchanges, and transforms the message so that the trade can be consummated using cryptographic techniques.
The platform can be used to conduct initial public offerings and other offerings of securities that are registered U.S. Securities and Exchange Commission (SEC), and by the general public to trade those securities in secondary market transactions.