Based in New York, Prometheum is a developing security token platform with an aim to establish a Wall Street for security tokens and digital assets alike. The company is creating its own blockchain with the capacity for regulatory compliance across multiple jurisdictions and the clearing and settlement of securities within 24 hours.
Prometheum’s Security Token Platform Explained
Prometheum is building a complaint end-to-end security token ecosystem.
The platform will facilitate the initial issuance and secondary market trading of regulated security tokens, as well as digital assets in general.
Founded by a group of Wall Street securities attorneys, the platform aims to integrate blockchain technology with the world’s existing financial infrastructure.
The company plans to do this through blockchain-based securities, which they specifically refer to as ‘Smart Security Tokens’. Prometheum will work alongside many elements of the traditional securities ecosystem, including clearing firms and broker-dealers, to leverage the benefits of tokenization in traditional finance— initial issuance, secondary market trading, etc.— and in-token scenarios, such as Dapps.
As a security token platform, Prometheum must be compliant with the many securities regulators across the globe. To do this, it will leverage its own blockchain, which is designed to maintain regulatory compliance regardless of jurisdiction. The capacity derives from a multi-chain design, where digital assets can operate according to their respective jurisdictions.
The blockchain also boasts the clearing and settlement of regulatory compliant transactions in under 24 hours.
Last month, Prometheum acquired technology from InteliClear which it says will enable it to become the first Alternative Trading System (ATS) to compliantly clear and settle security tokens.
While Wall Street giants such as Fidelity and Nasdaq have slowly entered the digital asset space, Prometheum wants to use proven technology to create a Wall Street for digital assets.
While the Initial Coin Offering (ICO) has seemingly disappeared due to regulatory concerns, the Security Token Offering (STO) is seeing increased levels of implementation.
So far, the security token industry has collectively raised nearly $1 billion through regulatory compliant assets including equity, real estate, investment funds, and even fine art.
What do you think about Prometheum and its mission to build a Wall Street for digital assets? Let us know what you think in the comments section below.
Image courtesy of Prometheum.