Prometheum's Alternative Trading System Receives SEC Approval, Marking Major Milestone for Digital Securities

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

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Prometheum's broker-dealer subsidiary, Prometheum Ember ATS Inc., has received regulatory approval to operate its Alternative Trading System (ATS) and offer accredited and non-accredited investors the ability to buy, sell and manage digital asset securities. U.S. Securities and Exchange Commission (SEC) approval means that Prometheum’s ATS will integrate both traditional and blockchain technology for the trading of digital asset securities with on-chain custody and settlement provided by Anchorage Digital Bank.

"Our commitment to innovating within the U.S. established regulatory framework has paid off," said Aaron Kaplan, founder and co-CEO of Prometheum. "We are thrilled Prometheum ATS was approved as an ATS and very much look forward to its launch in the coming months."

Prometheum is a blockchain-focused company that offers trading of digital asset securities. It allows companies to raise capital via Prometheum’s issuance platform and offers free trading of blockchain securities to both accredited and non-accredited investors.

The company joins a league of several other companies that have been building systems to enable trading of digital assets. They include tZERO and Overstock.com OSTK, the online retailer that recently deviated into the blockchain business. However, trading on Prometheum’s system will be different from other crypto exchanges in that it operates under securities laws which provides investors protections not afforded on crypto exchanges. 

Unlike a traditional initial public offering (IPO), Prometheum’s model reduces time and cost and removes the need for investor accreditation.

What is an ATS?

An ATS is a trading venue that matches orders from buyers and sellers of securities. It is different from a traditional stock market because it is regulated by a broker-dealer instead of an exchange. This type of trading venue must first be approved by the SEC before it begins making transactions.

As explained by the SEC, all current ATSs are dark pools, which function as trading systems that allow users to place orders without publicly displaying the size and price of their orders to other participants in the dark pool. One of the benefits of an ATS over a traditional stock exchange is that in using it to trade large volumes, the hidden pricing doesn’t skew the market price as with regular stock exchanges.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.