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Key Takeaways
- Prometheum launched Digital Brokerage Solutions, a platform giving broker-dealers and RIAs access to tokenized securities through existing account structures without relying on crypto-native exchanges.
- Co-CEO Aaron Kaplan argues that tens of billions in tokenized securities already exist on blockchain rails but lack a mainstream distribution channel to reach everyday investors.
- Inaugural clients include Arete Wealth Management and Network 1 Financial Securities, with additional broker-dealers and an unnamed institutional distribution partnership expected to follow.
Prometheum has launched a correspondent clearing, custody, and trading platform that lets broker-dealers and registered investment advisers offer tokenized securities and crypto assets through their existing account structures, the New York-based firm announced. The company said the infrastructure is the first of its kind to route blockchain-based securities through regulated broker-dealer channels at scale.
Prometheum Launches Clearing and Custody Suite for Broker-Dealers and RIAs
The firm launched what it calls Prometheum Capital’s Digital Brokerage Solutions, a suite of correspondent clearing, custody, and trading services built for broker-dealers seeking to offer crypto assets and blockchain-based financial products through existing account structures.
The company says it operates a network of SEC-registered and FINRA-member broker-dealers and that its infrastructure covers the full lifecycle of blockchain-based securities, including issuance, trading, custody, clearing, and settlement. Co-founder and co-CEO Aaron Kaplan said the firm’s clearing-enabled custodian sets it apart from competitors.
Prometheum’s inaugural correspondent clearing clients include Arete Wealth Management, Network 1 Financial Securities, and a third broker-dealer that Prometheum did not name, according to a company statement. The firm says additional broker-dealers and RIAs are expected to onboard in the coming months.
Kaplan Puts Unmet Distribution Gap at Tens of Billions of Dollars
In an interview, Kaplan had this to say: “The story of tokenization so far has been about issuance, but no one has addressed the challenge of how to get those products to mainstream investors.”
He added: “Until tokenized and digitally-native securities can reach investors through the broker-dealer channels they already use, tokenization is a solution without a market.” Kaplan put the scale of the gap in concrete terms:
“Crypto has solved tokenization, but it hasn’t solved distribution. There are tens of billions of dollars of tokenized securities already issued on blockchain rails, but almost no mainstream distribution channel to reach investors at scale.”
Kaplan was referring to traditional financial assets such as stocks, bonds, and funds that are issued and traded on blockchain networks as digital tokens.
Prometheum Joined DTCC Working Group in May Alongside 50-Plus Firms
Prometheum joined the DTCC’s Industry Working Group in May as one of more than 50 financial firms contributing to the development of the Depository Trust Company’s tokenization service, according to the company. The company operates a network of regulated entities that includes a transfer agent, broker-dealer, alternative trading system, custody platform, and correspondent clearing infrastructure.
Kaplan said the platform is designed to help issuers distribute tokenized securities into the broader financial system while enabling broker-dealers to offer digital assets without routing trades through crypto-native exchanges. He stated:
“The broker-dealer channel is how you reach investors at scale. Now, for the first time, broker-dealers and RIAs can offer digital assets directly through their existing account structures and compete with crypto trading venues on a more level playing field.”
Kaplan References Upcoming Institutional Partnership Without Naming Partner
Kaplan referenced an upcoming institutional distribution partnership but did not name the partner or provide further details, saying it would help attract larger issuers into the ecosystem.
On regulatory positioning, Kaplan said bringing blockchain-based assets into a broker-dealer framework preserves investor protections including asset segregation, custody controls, and compliance oversight, stating:
“It’s a tried-and-proven regulatory structure that has allowed investors to thrive for generations. Now it can support digital assets as well.”
He added: “Integrating blockchain into capital markets isn’t about replacing the system, it’s about modernizing it so that issuers, broker-dealers, and investors all benefit from faster settlement, broader access, and more efficient distribution of investment products.”
