Wall Street · Tokenization · JPMorgan · CoinDesk
Securitize and tZERO clash over patents as race to bring Wall Street onchain heats up
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Two of the biggest companies in the tokenization space are heading toward a legal showdown over intellectual property as the industry they helped create begins to seriously court institutional investors on Wall Street.
Key facts
- In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024
- TZERO launched in 2014 and has spent more than a decade building technology for regulated digital asset markets and says it holds 105 patents globally across 23 patent families related to tokenized
- Securitize, founded in 2017, has become one of the leading providers of infrastructure for tokenized funds and securities, working with firms including BlackRock, Apollo, KKR, Hamilton Lane and VanEck
- Earlier this year, the company announced a deal with the New York Stock Exchange (NYSE) to develop infrastructure for tokenized equities trading
Summary
TZERO has accused Securitize of infringing patents covering tokenized securities infrastructure and sent a cease-and-desist letter. Securitize responded Monday by filing suit in federal court seeking a ruling that it does not infringe upon Securitize's patents. The dispute emerges as Wall Street ramps up efforts to tokenize stocks, bonds and investment funds, a market that some forecasts estimate could reach trillions of dollars. Securitize said Monday it filed a lawsuit in the U.S. District Court in Delaware seeking a declaratory judgment that it does not infringe patents owned by rival tokenization firm tZERO.