The alternative trading system (ATS) is set to be a trading venue that matches buyers and sellers for both digital and traditional assets, if approved by the US Securities and Exchange Commission (SEC).
Opening Privileged Services to the Public
As announced by Anchorage, Prometheum CEO Aaron Kaplan stated that the ATS application is still pending at the U.S. Securities and Exchange Commission (SEC). Notwithstanding the approval, the company has built a system that allows brokerage firms and clearing firms to speak to each other easily in an effort to win over Wall Street companies to use a platform with which they’re familiar.
Currently this kind of service is only open to accredited and institutional investors, but Prometheum Ember ATS (“PEATS”) will be available to the public as well.
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,
Aaron Kaplan, Prometheum CEO
When the ATS goes live, Prometheum will be a full-service SEC and FINRA registered electronic market integrating both traditional and blockchain technology for the trading of digital asset securities, with on-chain custody and settlement provided by Anchorage Digital Bank.
It’s a Nasdaq on the blockchain
Aaron Kaplan, Prometheum CEO
Anchorage Holds the Key for Prometheum to Operate
Anchorage’s bank charter allows it to hold digital assets for broker-dealers and their clients, said Anchorage CEO Nathan McCauley. ATS itself “is something that is a trading system but it’s not regulated as an exchange.”
Other ATS providers for digital securities include OpenFinance and the Public Private Execution Network. Security token firm Securitize applied for both a broker-dealer license and an ATS in October.
Adding more ATS platforms for the digital security market will give issuers more liquidity for their tokens
Nathan McCauley, Anchorage CEO
During its charting process, Anchorage got specific approval from the Office of the Comptroller of the Currency (OCC) to custody security tokens on behalf of broker-dealers, McCauley added. The bank plans to offer cash loans with security tokens acting as collateral. Regulatory foundations are being set by these landmark organisations and act as support for the first public market for digital asset securities.
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