Prometheum, the controversial digital active securities company, aims to achieve a jump start in the lucrative tokenization boom that acquires a broker dealer and launches a digital transfer agent registered with the US Securities and Exchange Commission, the company told Coindesk exclusively.
Prominancial, the company’s newly acquired Finra member and SEC-registered broker dealer, can primarily offer the sale of different securities products, giving issuers a way to raise capital directly in tokenized form. The Prometheum Coinery, meanwhile, handles shareholder registers and business actions both on and off blockchain.
The additions are based on existing services for custody, clearing and secondary trade via its associated brokers, Prometheum Capital and Prometheum ATS.
With the latest step, the company aims to place as one of the few US-regulated players offering a vertically integrated route to bring assets in the real world into a blockchain-native format-a capacity that is likely to become more critical as the tokenization trend matures.
“Securities, raw materials, everything else moving on the chain, and there must be an infrastructure for it. [There’s] A pie that will grow significantly, just as everything went from paper to electronic, “Aaron Kaplan, Co-Ceo told Coindesk in an interview.” We are in an important position in my opinion to be a significant player in the growing ecosystem. “
The expansion comes as active tagging emerges as one of the fastest growing corners of Crypto Tech at a time when US regulators signal a friendlier approach to digital assets. Tokenization is responsible for using blockchain rails to move and control traditional instruments such as bonds, funds and other securities where global asset managers and banks are increasingly involved in achieving operational efficiency and cheaper, faster settlements. It is potentially a lucrative option: The tokenized asset market could balloon to several trillion dollars over the next few years, a series of reports from BCG, Ripple, McKinsey, 21Shares projected.
It is not surprising that tokenization companies jockeying for attitude to seize the opportunity when the sector warms up. Recently, Digital Asset Manager Superstate registered his transfer agent at SEC and revealed a tokenized stock trading platform. Securitize, a tokenization company supported by BlackRock and Jump Crypto, bought MG Stovers Fund Management, while Financial Service Provider Apex Group announced last week the acquisition of tokenization specialist Tokeny.
Prometheum, founded in 2017, made headlines in recent years with efforts to comply with the Gary Rensler-led SEC, known for its harsh attitude towards crypto. The company also shared the digital asset industry with wanting to provide securities -focused services to cryptocurrencies like ether
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With the new units, the company is now able to offer a fully integrated platform for tokenized securities, from initial issuance to secondary trade and custody, all within US securities laws, something that is difficult to achieve, argued Kaplan.
“It’s a much larger lift than what was previously done with these others [tokenization] Businesses, “Kaplan said. Creating a digital token of an asset is the” low-hanging fruit “while he is able to deal with trade and post-trade is” exponentially harder “, he explained.
“The harder parts are what we built first,” he said. “Other [firms] Went the other route, which was first the lowest hanging fruit and they have had a harder time changing the other way. “
“So with this message, it’s pretty clear that the low hanging fruit is in our purpose,” he said.
Jesse Hamilton contributed reporting.
