Fundamental blockchain company, Prometheum, brings in $20 million in financial backing
Prometheum Raises $20 Million to Revolutionize Digital Securities Trading
Prometheum, a pioneering fintech company, announced on Tuesday that it has successfully raised $20 million in funding. This capital will be used to develop and launch trading services that facilitate the tokenization of securities, aiming to create a regulated, end-to-end digital securities trading platform.
The funding will support building infrastructure that integrates blockchain technology with existing financial regulations, enabling secure, compliant tokenized securities trading. According to Aaron Kaplan, founder and co-CEO of Prometheum, financial institutions will turn to the blockchain to issue securities due to its efficiency.
The blockchain offers the possibility of instantaneous settlement and related cost savings, as per Kaplan. It also provides a more efficient means of record keeping due to less human involvement. The cost savings from the blockchain, as Kaplan further explains, will allow issuers to create less expensive products.
Prometheum is one of two firms to have been awarded the special purpose broker dealer license, which allows it to custody assets, in contrast to the ATS license which only allows for trading. The company currently custodies digital assets including ethereum, The Graph, Uniswap, and Arbitrum.
With this funding, Prometheum plans to use the raised funds to support tokenized securities by major institutions. The $20 million capital raise will also allow Prometheum to continue hiring, unlike many crypto and fintech firms that were reducing staff in 2024. As a result, Prometheum grew its employee base by 60% in 2024.
The impact of Prometheum’s work on the fintech industry is significant. By advancing trading services tailored for tokenized securities, Prometheum helps bridge traditional finance and blockchain innovation. This can increase liquidity and accessibility of securities markets by enabling fractional ownership and 24/7 trading.
Improved transparency and settlement efficiency through blockchain-based record-keeping is another benefit. Furthermore, the regulatory compliance focus fosters wider institutional adoption of digital assets. Overall, this contributes to growing acceptance and practical implementation of tokenization in fintech, potentially transforming how securities are issued, traded, and managed.
Aaron Kaplan compared the move to the blockchain for securities issuance to the move from paper to electronic trading. Just as electronic trading revolutionized the financial industry, the blockchain has the potential to do the same for securities trading. With the first quarter of 2025 approaching, Prometheum is set to launch its trading services, furthering the integration of blockchain technology into the financial sector.
- The $20 million funding raised by Prometheum, a fintech company, will be utilized to develop and launch trading services that focus on investing in tokenized securities, aiming to establish a regulated, end-to-end digital securities trading platform.
- The blockchain technology integration with existing financial regulations, enabled by this funding, will offer a more efficient means of record keeping and instantaneous settlement, potentially leading to cost savings that allows issuers to create less expensive products.
- With the revolutionized digital securities trading platform, Prometheum's work in fintech can increase liquidity and accessibility of securities markets by facilitating fractional ownership and 24/7 trading, ultimately leading to a widespread acceptance and practical implementation of tokenization in the industry.
