tZERO Sends Cease-and-Desist Letter to Securitize, Targets Additional Firms in Patent Enforcement Push

tZERO Group, Inc., a blockchain-based financial infrastructure provider since 2014, announced today that it has sent a cease-and-desist letter to Securitize, Inc. alleging infringement of two of its patents related to security token compliance and crypto integration. The move is part of an ongoing strategic review of tZERO’s intellectual property portfolio, which comprises 105 patents across 23 families worldwide.

According to the company’s press release, tZERO determined that certain products of Securitize, including its DS protocol and Vault Registrar, infringe U.S. Patent Nos. 11,216,802 (Self-enforcing Security Token Implementing Smart-contract-based Compliance Rules Consulting Smart-contract-based Global Registry of Investors) and 11,394,560 (Crypto integration platform). The letter demands that Securitize cease and desist from using the allegedly infringing technology and reserves tZERO’s rights to pursue further legal action.

tZERO also revealed that its investigation has identified additional products from at least six other market participants in sectors including Regulated RWA & Digital Asset Securities Platforms, Institutional Infrastructure, Prime Brokerage & Liquidity Aggregators, Decentralized Sequencing, Fair Ordering & Crypto Infrastructure, and Decentralized Exchanges & Specialized DeFi Dark Pools. The company expects to send demand letters to these entities upon completion of its analysis.

The patents in question cover foundational technologies for tokenized capital markets. tZERO highlighted several additional patent families, including those related to a Crypto Multiple Security Asset Creation and Redemption Platform (7 patents), a Consolidated Order Book from Multiple Asset Exchanges (3 patents), a Decentralized Trading System for Fair Ordering and Matching of Trades (2 patents), and Obfuscation of Intent in Transactions Using Cryptographic Techniques (9 patents). These technologies span tokenized fund creation and redemption, cross-venue liquidity management, decentralized trade ordering, and privacy-preserving transactions.

This enforcement action signals tZERO’s intent to protect its market position as the tokenized securities industry matures. The company and its investors have dedicated substantial resources to building its IP portfolio, and tZERO stated it will remain vigilant in protecting its intellectual property and shareholders’ investment. The outcome of these enforcement efforts could have significant implications for other market participants using similar technologies, potentially leading to licensing agreements or legal disputes that shape the competitive landscape of regulated digital asset securities.

tZERO expects to provide further updates on its patent strategy, enforcement, and commercialization initiatives. Market participants interested in licensing tZERO’s IP can contact the company directly.

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