As Wall Street speeded up the chaining of stocks, bonds and funds, a patent dispute erupted between two old companies in the currencyization track of securities. Securitize has filed an action in the United States Federal District Court in Delaware, seeking confirmation that its products did not infringe on the relevant patents held by its competitor tZERO.
tZero first sent a letter of cessation.
This dispute started with the tZero charges. According to Securitize, products such as DS Protocol and Vault Register were suspected of violating its patents on compliance control of monetized securities, the issuance and redemption of digital assets and the trade infrastructure based on block chains, and a letter of cessation of infringement was sent to the other party.
Securitize subsequently denied the allegations and chose to prosecute on his own initiative. The company issued a statement on social platforms stating that the allegations of tZero were “unfounded”.
Controversy focused on the sub-dependency of securities
Reports indicate that the core of the dispute between the parties is not a single product, but rather the bottom-level capacity required for the monetization of securities, including compliance verification, asset issuance, foreclosure processes, and how the trading system connects to the encryption infrastructure.
tZERO also states that, in addition to Securitize, companies are investigating the existence of similar violations in at least six institutions, in the areas of monetization, institutional encryption infrastructure and DeFi.
Wall Street accelerates entry and lifts the industry.
This conflict of laws is taking place against the backdrop of the fact that traditional financial institutions are more active in advancing the chain of real world assets. Proponents believe that monetization can increase the efficiency of record-keeping in the issuance, settlement and holding of records and, as a result, has continued to attract banks, exchanges and regulators in recent years.
Public reports mention that institutions such as Belet, Morgan Chase, NASDAQ and the New York Stock Exchange are all adding to related business. A number of research institutions have also given higher expectations: Citi had predicted that the market value of monetized assets could reach $5 trillion by the 2030s; and a report from Boston Consulting and Ripple predicted that the market could reach $18.9 trillion by 2033.
Both companies are promoting capital market cooperation.
tZERO was established in 2014 with a long-term layout of the regulated digital asset market. According to the company, 105 patents, covering 23 patent families, were held around the monetized capital market worldwide. The New York Stock Exchange, whose parent company, the Intercontinental Exchange, made a strategic investment in 2022, and the tZERO disclosed its listing plan last year.
Seturitize was founded in 2017 and is currently working with Belet, Apollo, KKR, Hamilton Lane and VanEck to provide monetization funds and securities infrastructure. Earlier this year, the company also announced its cooperation with the New York Stock Exchange in developing a monetized stock exchange infrastructure, and plans to be listed later this year through a merger of entities supported by Cantor.
This means that the lawsuit is not only an intellectual property dispute between the two companies, but may also affect the choice of a supplier of lower technology when institutional funds enter the monetized securities market.