Launch of Prometheum ATS in the third quarter

Aaron Kaplan

According to Aaron Kaplan, Co-CEO and Co-Founder, Prometheum, parent company of a FINRA member firm and alternative trading system (ATS) for securities of digital assets registered with the SEC, aims to launch its ATS in third trimester.

Initially, Prometheum ATS will target institutional traders, then plans to introduce retail trading, once its sister company, Prometheum Capital, becomes a specialty broker (i.e. an SEC-regulated blockchain custodian) , he told Traders Magazine.

“Our intention is to create a thriving public market for digital asset securities regulated by federal securities laws that requires the ability to serve both institutional and retail investors/traders,” he said. he declares.

Kaplan said there are many, but few, if any, digital asset trading venues that are regulated and/or operate under federal securities laws (FSL).

He explained that virtual currency exchanges allow digital asset trading but operate in a regulatory gray area or are regulated as Money Services Bureaus (MSBs), but major virtual currency exchanges (regulated as MSB) do not offer investors the protections required by FSLs.

Founded in 2017 by a group of Wall Street lawyers, Prometheum is a blockchain-focused company that aims to build an end-to-end ecosystem for trading, custody and settlement of digital asset securities.

Prometheum ATS is licensed and regulated by FINRA and the SEC and operates under federal securities laws, which require investors to be protected, markets to be fair and orderly, and information to be fully and fairly disclosed, a said Kaplan.

He added that Prometheum ATS is “one of, if not the first”, public market ATS for digital asset securities.

Kaplan explained that Prometheum ATS’ systems are designed to ensure compliance with securities laws and have been licensed to operate under them, eliminating ongoing compliance risk and associated regulatory uncertainty. institutional participation in space.

“At Prometheum, we have always believed that FSLs are the best framework to regulate the issuance, trading and custody of digital assets,” he said.

“We believe that the best way forward for investors, traders and the digital asset space in general is the application of federal securities laws to activities associated with investing, trading and custody of digital assets and think that’s what we’ll see happen. forward,” he added.

According to Kaplan, the Prometheum ATS is also built with the goal of enabling seamless integration with traditional Wall Street.

Leveraging established methods/instruments used by the securities industry (FIX Engine, Equity Trading Model, etc.), Prometheum provides an environment in which financial institutions and traders can connect and feel comfortable in trading, he said.

Prometheum has built a set of trading systems to facilitate both the technology integration requirements of blockchain and digital assets as well as the performance and capacity requirements of traditional markets, he said.

“Our trading gateway integrates directly with our web-based trading interface and trading API and our multi-layered risk control system ensures our compliance team can monitor trading activity in real time” , did he declare.

According to Kaplan, regulation provides the clarity and kind of framework by which digital assets can thrive on a larger scale.

He said that with recent events related to Coinbase’s disclosure that customers could become general creditors in the event of bankruptcy, or the Luna/UST death spiral, it is “clearly evident that the federal government American will intervene. on several fronts to ensure that investors/customers are protected”.

“Implementing the proven federal securities laws is what we at Prometheum believe is the best way forward to ensure that investors are protected, markets are fair and that all the world has a level playing field when it comes to information in the digital asset space,” he said.

He added that institutional interest in digital asset trading platforms operating under federal securities laws is also growing at a “pretty rapid” rate.

“There is a noticeable paradigm shift from even a quarter ago in terms of interest/appetite and understanding that digital asset trading platforms regulated by federal securities laws securities are the future of digital asset trading,” he concluded.

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