Prometheum, a market infrastructure provider for blockchain-based securities, and EDX Markets, an institutional digital asset trading venue with a central clearinghouse, are rolling out crypto-as-a-service to traditional financial institutions seeking to enter on-chain ecosystems. Prometheum secured an additional $23 million from high-net-worth investors and institutions to expand its digital asset products, including crypto, tokenized assets, and on-chain securities, into mainstream financial markets. Aaron Kaplan, Prometheum’s co-chief executive, said the funding will be used to build out distribution channels by integrating with different broker-dealers, stating, “It is our belief that distribution is one of the keys towards the transition to digital markets.”
In June last year, subsidiary Prometheum Capital, a FINRA member firm and SEC-registered special purpose broker-dealer, was authorized to provide correspondent clearing services to third-party broker-dealers. Correspondent clearing allows the firm to provide clearing, custody, execution and record-keeping services to other broker-dealers. “Our goal is to allow institutions to build out their digital businesses on both the issuer side and the broker-dealer side, as they have been looking to give their clients access to digital assets,” Kaplan said, and Prometheum was built to use the methodologies and standards of the brokerage industry, such as FIX messaging or API integration, to meet regulatory and compliance requirements.
The firm is onboarding its initial correspondent clearing relationships.
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