Tokenization Firm tZERO Plans $350 Million Public Listing via SPAC Merger

tZERO to list on NYSE American through SPAC merger

tZERO, a company that builds infrastructure for blockchain-based securities, has announced plans to go public. The firm will merge with FG Imperii Acquisition Corp. (FGII), a special-purpose acquisition company (SPAC). A SPAC is a company formed specifically to merge with a private business to take it public on a stock exchange.

The deal values tZERO at $350 million before new capital is added. The combined company expects to trade under the ticker symbol TZRO on the NYSE American exchange.

Key details of the $350 million deal

• The merger could provide up to $231 million in cash from the SPAC’s trust.
• The final amount of cash depends on how many SPAC shareholders choose to withdraw their money before the deal closes.
• Existing tZERO shareholders are expected to keep their ownership stakes in the new company.
• Investors representing approximately 62% of the company's capital have already signed agreements to support the merger.

CEO outlines goals for the infrastructure model

CEO Alan Konevsky stated that institutional clients want to offer their own branded tokenized products. Tokenization involves putting traditional assets like stocks and bonds on a blockchain, which is a shared digital ledger used for recording transactions.

Konevsky told CoinDesk that the transaction is designed to provide greater access to capital. This will help the company grow its model of providing technology and services to other firms.

tZERO's background and industry partnerships

tZERO has been building blockchain-based markets since 2014. The firm holds more than 100 patents related to tokenization and securities infrastructure. Its regulated subsidiaries provide services like trading, custody, and brokerage for digital securities.

The company is backed by Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange. tZERO is also a design partner for the NYSE’s own blockchain-based trading platform.

What is confirmed and what remains uncertain

The deal is officially announced and has the support of a majority of capital holders. However, the merger still needs approval from regulators and shareholders before it can be finalized.

A legal dispute currently exists between tZERO and a rival firm, Securitize, over patents. Additionally, the final amount of cash available after the merger is not yet confirmed because shareholders have the option to redeem their shares.

Why tokenization infrastructure is gaining attention

Large banks and asset managers are increasingly exploring how to move traditional financial assets onto blockchain technology. Financial firm Citi has estimated that the market for tokenized securities could grow to $5.5 trillion by 2030. This growth increases the demand for the specialized technology used to issue, trade, and settle these digital assets.

Expected timeline for the public listing

The merger is expected to close in early 2027. Once the deal is finished, the company plans to list its shares. Alan Konevsky is expected to remain the CEO of the combined company.

Sources

• CoinDesk

Read also: NYSE adds Broadridge, Computershare, Equiniti and Superstate to tokenized stock plans