Prometheum, a digital asset securities platform, and Anchorage Digital Bank have announced a partnership to create the first public Alternative Trading System (ATS). Headed by Prometheum Ember ATS (PEATS), a wholly-owned subsidiary of Prometheum, it will be a FINRA and SEC-regulated trading system, allowing the trading of digital asset securities.
According to Aaron Kaplan, founder, and Co-CEO of Prometheum:
“A public ATS for digital assets will allow more efficient order matching and better price discovery, bringing smaller price spreads and simplified participation for all investors.”
Traditional Financial Technology Makes Its Way To Digital Assets
ATS-Technology is used in traditional markets; it is this technology that PEATS brings to the digital assets space under guidance from the SEC. Once all pending approvals are in place, the PEATS ATS will be open to trading, with Anchorage Digital Bank in the custody of all digital assets transacted through PEATS.
A Historic First
The news of the collaboration between Prometheum and Anchorage Digital Bank comes on the back of the Office of the Comptroller of the Currency (OCC), granting conditional approval to making the Anchorage Digital Bank Association the first federally chartered digital asset bank.
Anchorage Digital Bank President and CEO Nathan McCauley believe that the OCC granting conditional approval and Prometheum’s pending ATS application will establish a robust regulatory foundation that would support the market for digital asset securities. Nathan McCauley commented on the developments stating:
“Regulatory clarity is the building block to enabling broad participation in digital assets,” “At Anchorage, it’s by operating in existing regulatory frameworks so we can bring innovations to market with capable builders like Prometheum.”
So What Happens When Promethem’s ATS goes live?
Once Prometheum’s ATS application is approved, it will become a full-service electronic market, registered with the SEC and FINRA, integrating traditional and blockchain technology in trading digital asset securities. Anchorage Digital Bank will do its part and provide on-chain custody and settlement.
Prometheum also purchased InteliClear’s post-trade solution technology, a clearing solution technology that several U.S. clearing firms use. Prometheum also had a few more announcements up its sleeve, namely – the Manorhaven Capital LLC acquisition, the SEC-approval of Spark Transfer Services – the company’s wholly-owned transfer agent – and the close of an oversubscribed funding round.
A Look At Prometheus And Anchorage Digital Bank
Anchorage offers crypto-native financial solutions that are compliant, easily adaptable to emerging blockchain use cases, and tailored to evolve according to investors’ needs.
Prometheum was founded in 2017 and is an innovative, blockchain-focused company driving the creation of the first regulated end-to-end ecosystem for digital asset securities. The solutions will reside on the Prometheum network, and its blockchain will track transactions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.