tZERO appoints David Goone as CEO amid investment from ICE

Rick Steves

The deal will make ICE a significant minority shareholder in tZERO, but terms will not be disclosed. The funding round included the participation of other leading investors such as Overstock.com, Inc. and Medici Ventures. 

Intercontinental Exchange has made a strategic investment in tZERO, a leader in blockchain innovation and liquidity for digital assets.

David Goone, ICE’s Chief Strategy Officer, will join tZERO as its next Chief Executive Officer and will serve on tZERO’s Board of Directors, while continuing to serve ICE and its Chairman and CEO, Jeff Sprecher, in a consulting capacity.

David Goone, a key player at ICE

Jeff Sprecher, Founder, Chairman and CEO of Intercontinental Exchange, said: “David Goone was present at many of ICE’s milestone moments and deals over two decades, a key player on our management team as we built our world-class trading, clearing and data infrastructure and product line, and has been a steward of our problem-solving culture.

“David’s leadership and his mastery of trading, data, and clearing technology will be a big asset as tZERO begins its next chapter leading the growth and adoption of next-generation market infrastructure.”

tZERO’s new chief executive developed and managed many of ICE’s product lines and oversaw ICE Benchmark Administration, which has administered LIBOR and the global gold and silver fixings.

He has served on many of ICE’s subsidiary exchange boards and represents ICE on several industry boards, including the Depository Trust Clearing Corporation (DTCC), Options Clearing Corporation (OCC), and the National Futures Association (NFA). Goone also served as Vice Chairman of CETIP S.A. until its merger with B3 exchange in Brazil.

tZERO operates an SEC-regulated alternative trading system (ATS) and broker-dealer in the digital asset space, bringing together issuers and financial firms seeking a transparent, automated, digitally enabled marketplace and investors seeking access to unique private assets, public equities, cryptocurrencies, and other digital assets, including non-fungible tokens (NFTs).

Expanded crypto offering and a $800k fine

In October 2021, tZERO added more popular cryptocurrencies/tokens to its proprietary platform: Bitcoin Cash (BCH), Stellar Lumen (XLM), Cardano (ADA), Compound (COMP), and Uniswap (UNI), bringing the total available cryptocurrency suite to 15 different coins.

The additional cryptocurrencies complement tZERO’s existing product range of digital assets, which includes the already installed Bitcoin, Ethereum, Litecoin, Chainlink, Dogecoin, USDC, 0x, Bitcoin SV, Basic Attention Token, and Ravencoin.

tZERO has been quickly shoring up its offerings with more altcoins. While 2020 marked the launch of its platform and a gradual embrace of crypto products, the latest expansions have been fueled by consistent demand for more diverse options.

The move comes on the heels of tZERO launching major updates to its crypto app, which introduced faster settlement times and higher buy limits: The app now supports $25,000 per day deposit limits as part of its standard offering.

Earlier this year, tZERO settled with the Securities and Exchange Commission, who fined the blockchain-powered trading platform $800,000 for allegedly violating federal disclosure rules.

The SEC pressed charges against tZERO because it has allegedly failed to properly disclose key information in accordance with federal regulations.

The trading platform was sharing order information with a broker-dealer affiliate and Blue Ocean Technologies, a Singapore-based trading partner that it later acquired. tZERO also failed to file an amendment to its Form ATS with the SEC for more than two years.

“These proceedings arise out of Respondent’s operation of an alternative trading system (“ATS”), pursuant to an exemption from registration that required it to comply with Regulation ATS, promulgated under the Exchange Act.2 Regulation ATS requires, among other things, that ATSs make certain disclosures to the Commission”, said the SEC’s order.

“In addition, Regulation ATS requires an ATS that has a significant percentage of overall trading volume in a security or category of securities during a certain period of time to comply with a number of heightened requirements, known as the “Fair Access Rule”.

“Whether and how an ATS displays orders and trading interest is fundamental to any ATS’s operations because order display provides buyers and sellers with the expectation of liquidity in the ATS and the potential execution of a participant’s orders,” the SEC order added.

Read this next

Digital Assets

FINMA-regulated digital asset provider Taurus expands into Germany

This expansion follows recent moves by BaFin to accelerate the licensing of crypto custody services, aiming to boost market confidence. Following this, several new licenses were issued, notably to Commerzbank, making it the first full-service financial institution in Germany to receive a crypto custody license.

Inside View

Stocknet’s Nick Hall defends gamification as trading platform market set to hit $15.34b by 2030

“The growing popularity of gamified trading has the potential to tackle this financial literacy gap. Rather than simply giving users unfettered access to markets and letting them figure things out for themselves, platforms can offer virtual skill games and challenges to help educate traders and prime them for success.”

Inside View

Infographic: Interest rate and FX derivatives are driving rise of OTC derivatives market

These trends suggest a growing and evolving OTC derivatives market, with an increased focus on risk management and regulatory compliance. The rise in clearing rates, along with the increased initial margin requirements, reflects a more cautious approach to risk in the financial services industry.

Market News

Bank of Canada’s Final 2023 Policy Update on the Canadian Dollar and Future Monetary Landscape

The Bank of Canada’s final policy update for 2023, as reported by Bloomberg, had a relatively subdued impact on the performance of the Canadian dollar, especially when compared to the discernible market reactions following prior BoC policy decisions throughout the year.

Inside View

DTCC’s Systemic Risk Barometer Survey found 2024 US Presidential Election as a top risk

U.S. political uncertainty, particularly regarding the 2024 Presidential Election, has emerged as a key risk, with 51% of respondents highlighting it as a major concern. This reflects the potential impact of election outcomes on market conditions and the industry.

Executive Moves

Options Technology promotes Laura McCann to CFO

“Laura’s promotion to CFO is the next stage in our long-term strategy of building a world-class finance team servicing the global business from our Belfast office. Back in 2016, Jon took on the challenge of laying the groundwork for that vision. Laura has been an integral part of the strategy from day one.”

Digital Assets

Thailand’s crypto economy under the spotlight: a report by HashKey Capital

“I’m excited by the rapid expansion of Thailand’s Web3 sector. With over 3 million overall crypto users and 600% growth in the market in recent years, the dynamism in our DeFi and NFT sectors is clearly evident. Thailand is increasingly becoming a hotspot for digital nomads, drawn by our crypto-friendly policies, affordable living costs, vibrant food and beverage culture and diverse cultural landscape.”

Retail FX

Webull Australia offers 5.4% yield on uninvested cash

“US dollar money market funds are heavily regulated, meaning client funds are managed in a safe, reliable and trusted environment, which is of critical importance to us, and continues to remain top-of-mind for our clients.”

Digital Assets

Bybit welcomes Ethena’s USDe, a decentralized stablecoin utilizing delta-hedging staked Ether

“Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”

<