Prometheum Announces First Client for SEC-Regulated Crypto Service
SEC-approved crypto service secures its first client.
1Prometheum's First Client
Prometheum has announced its first client for its SEC-approved crypto brokerage model. Velocity Capital has joined Prometheum Capital's omnibus correspondent clearing platform. This deal marks the first commercial customer for the infrastructure Prometheum has been developing for years.
2Solution for Traditional Brokers
Prometheum aims to facilitate traditional brokers' access to digital assets. The company enables brokers to offer digital asset products without developing their own custody infrastructure. This eliminates the need for direct integration with blockchain and wallet technology.
3Service Scope
Prometheum's Digital Brokerage Solutions platform supports tokenized securities, digitally native securities, and selected crypto tokens. Velocity Capital will utilize this platform for crypto asset execution, custody, clearing, and settlement services.
4Regulatory Process
Prometheum is one of the few firms with SEC-registered crypto broker-dealer infrastructure. The company was among the first to receive approval under the Special Purpose Broker-Dealer framework developed during former SEC Chair Gary Gensler's tenure.
5Criticism and Skepticism
Prometheum's business model has faced criticism due to the limited availability of tokenized securities. Critics have questioned whether there will be enough issuers and broker-dealers willing to use the platform.
6Early Customer Adoption
The Velocity Capital agreement exemplifies early customer adoption of Prometheum's infrastructure. The companies did not disclose details on which assets will be supported, when customer trading will begin, or the commercial terms.