Prometheum Ember ATS has announced a FINRA and SEC-regulated trading platform that will aim to provide liquidity for “digital asset securities.”
Prometheum has received approval to operate an ATS or Alternative Trading System. Before operating an ATS, a platform must be an approved as a broker-dealer.
Prometheum states that it will provide trading for both institutional and individual investors for digital securities.
Prometheum has integrated with federally chartered Anchorage Digital Bank, which is powering clearing, settlement, and custody.
Importantly, Prometheum has been created to integrate with legacy securities trading systems – an important quality in providing greater trading liquidity. The company explains that this is accomplished by connecting directly with qualified custodians to facilitate quick and efficient settlement and providing a compliant solution to trade digital securities. The blockchain technology is said to eliminate intermediaries while offering same-day settlement.
Prometheum ATS reports that currently, the digital securities supported include Flow, Filecoin, The Graph, Compound, and Celo. While some individuals may describe these assets as crypto – Prometheum is treating them the same as registered securities.
To boost utilization, institutional customers onboarded at launch will secure a 50% reduction on transaction fees for the first six months.
Prometheum Founder and Co-CEO Aaron Kaplan commented that for too long digital asset trading has taken place on unregulated platforms instead of a marketplace that operates under the current SEC framework for securities:
“Prometheum sets itself apart by maintaining the ability to be sustainably compliant under current securities laws, ensuring the multi-layer protections and standards required on Wall Street.”
Prometheum ATS’s highlights features of its marketplace:
- Depth of market, Level 2 data, order and execution management, and customizable historical charts.
- Full access functionality for all users, regardless of trading activity, volume, experience, or account size.
- Automated systematic matching for buy and sell orders of digital asset securities.
Prometheum, founded in 2017, states that regulation is the “sword and shield” for investor protection and that disclosure and fair and orderly markets are key to the emerging digital security market.
Prometheum is not the only platform providing digital security trading, but the market is nascent as the transition to digital asset securities is taking time. Most observers anticipate that, at some point in the future, all securities will be digital.