Market forecasts have increased in recent years. Citi has estimated tokenized assets could reach a market value of $5 trillion by 2030, while a report by Boston Consulting Group and Ripple predicted a market worth $18.9 trillion by 2033.
Patent battle over tokenization infrastructure
At the center of the dispute are patents covering compliance systems for tokenized securities, digital asset issuance and redemption technology, and blockchain-based trading infrastructure.
tZERO said its investigation concluded that products including Securitize’s DS protocol and Vault Registrar infringe patents covering self-enforcing compliance controls for security tokens and crypto integration systems.
The company said it is also investigating potential violations by at least six other firms across tokenization, institutional crypto infrastructure and decentralized finance.
Securitize denied the claims.
“tZERO’s allegations are without merit and are contrary to the spirit of fair play that defines our industry at its best,” the company said in a statement published on X.
Early pioneers clash amid growing stakes
The dispute pits two pioneers of tokenization against each other.
Launched in 2014, tZERO 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 capital markets. NYSE parent Intercontinental Exchange made a strategic investment in the company in 2022, and tZERO last year revealed plans to go public.
