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As of September 4th 2019, Prometheum has announced the acquisition of a version of InteliClear’s post-trade solution technology. Prometheum says the new tech will lead to the company becoming the first Alternative Trading System (ATS) to compliantly clear and settle security tokens.
Prometheum’s Acquisition of InteliClear Explained
Prometheum is a blockchain-based platform which facilitates the trading of security tokens.
Through the acquisition of InteliClear’s post-trade technology, the company aims to fill the existing void seen in the blockchain-powered clearing of regulated security token trading.
Every U.S. clearing firm uses a securities processing system— usually referred to as a clearing system— to finalize traditional stock market trades between customers, brokers, and exchanges. Importantly, such a system must also be compliant with the SEC’s Securities Exchange Act (SEA).
While digital assets can be stored in digital wallets, Prometheum says this method fails to qualify as a true clearing and custodial solution according to the SEA.
In acquiring InteliClear’s tech, Prometheum aims to streamline the process of clearing trades in the security token industry, while also remaining regulatory compliant. They say the new tech will lead to them becoming the first ATS to clear and settle security token trades.
According to Prometheum CEO Aaron Kaplan,
“This acquisition marks a major milestone in Prometheum’s progress toward building the first compliant digital asset clearing firm. We are thrilled to add InteliClear’s post trade solution technology to our portfolio. It truly propels us forward in our quest to become a full end-to-end cryptosecurities trading platform for both sophisticated investors and novices alike.”
John Paul DeVito, Managing Director of InteliClear, commented,
“The Prometheum ATS team realizes that digital compliance is critical for distributed ledger technologies facing the global financial services community. We are honored to be part of the solution in Prometheum’s ecosystem.”
In November of 2017, Prometheum filed a Reg A+ Security Token Offering (STO) with the SEC. The company aims to raise $50 million through its ‘Ember’ token. The offering has been updated to include the InteliClear acquisition as well as additional progress.
What do you think of Prometheum acquiring new technology to become the first ATS to clear and settle security tokens? We’d like to know what you think in the comments section below.
Image courtesy of Prometheum.