Prometheum is wagering that the advancement of tokenized finance will be propelled not by cryptocurrency exchanges, but rather by established broker-dealers and registered investment advisers (RIAs).
According to Aaron Kaplan, co-founder and co-CEO of Prometheum, "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 emphasized that without the ability for tokenized and digitally-native securities to reach investors via the broker-dealer channels they already utilize, tokenization remains a market solution without a viable market.
Tokenized securities represent traditional financial assets like stocks, bonds, or funds, which are issued and traded on blockchain platforms as digital tokens, symbolizing ownership or investment rights.
Recently, the New York-based digital asset infrastructure company launched Prometheum Capital’s Digital Brokerage Solutions, a comprehensive suite of correspondent clearing, custody, and trading services aimed at enabling broker-dealers to offer crypto assets, including tokenized securities, directly through their traditional brokerage accounts.
This launch represents Prometheum’s ongoing efforts to connect the crypto sector with the regulated securities market.
Kaplan stated, “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.”
Prometheum functions through a network of SEC-registered and FINRA-member broker-dealers, which are designed to support the entire lifecycle of blockchain-based securities, including issuance, trading, custody, clearing, and settlement.
Positioning itself as a bridge between conventional financial markets and digital assets, the firm provides regulated infrastructure for tokenized securities, crypto assets, and onchain financial products via existing brokerage and securities law frameworks.
It operates a comprehensive network of regulated entities that encompass the entire digital asset lifecycle, including a transfer agent, broker-dealer, alternative trading system (ATS), custody platform, and correspondent clearing infrastructure. Kaplan referred to the firm’s clearing-enabled custodian as its “special sauce.”
In May, Prometheum joined the Depository Trust & Clearing Corporation (DTCC) Industry Working Group, alongside over 50 financial firms, to help shape the development of the Depository Trust Company’s (DTC's) tokenization service.
Establishing a Distribution Flywheel
The platform is designed for two main purposes: to assist issuers in distributing tokenized securities within the broader financial ecosystem and to allow traditional broker-dealers to create digital asset businesses without depending on crypto-native exchanges.
This strategy fosters what Kaplan describes as a “flywheel effect,” linking issuers with institutional distribution channels while granting traditional financial firms access to the expanding market for blockchain-based assets.
Among Prometheum's initial correspondent clearing clients are Arete Wealth Management, Network 1 Financial Securities, and an unnamed clearing broker-dealer, as per a company announcement.
Kaplan believes that the significant opportunity lies in opening the broker-dealer and RIA channels—historically the primary distribution network for conventional securities—to digital assets.
“The broker-dealer channel is how you reach investors at scale,” he remarked. “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.”
Challenging Crypto Platforms Under Securities Regulations
Prometheum contends that conventional securities firms have largely been excluded during the crypto boom because many digital asset platforms operated outside the scope of traditional securities regulations. By integrating blockchain-based assets within a regulated broker-dealer framework, Kaplan asserts that firms can compete while upholding investor protections such as asset segregation, custody controls, and compliance oversight.
“It’s a tried-and-proven regulatory structure that has allowed investors to thrive for generations,” Kaplan noted. “Now it can support digital assets as well.”
The firm is positioning itself around the notion that the future of securities markets will inevitably transition onchain. Kaplan highlights industry forecasts suggesting that tokenized real-world assets (RWA) could emerge as a significant segment of capital markets over the next decade.
“The future of securities is onchain,” he stated. “As these products become better, faster, and cheaper, broker-dealers will need the infrastructure to compete and offer them to clients.”
Anticipating More Broker-Dealers and RIAs to Join
Prometheum expects additional broker-dealers and RIAs to come on board in the upcoming months as demand for regulated digital asset infrastructure increases. Kaplan also hinted at an imminent institutional distribution partnership that could attract larger issuers into the ecosystem.
This broader perspective reflects a transformation occurring within the digital asset industry, where firms are increasingly focusing less on token creation and more on integrating blockchain-based assets into existing financial distribution networks.
For Prometheum, the belief is that tokenization alone isn't sufficient. Without the distribution capabilities of Wall Street, digital securities may remain a niche product despite the technology’s potential.
Kaplan remarked, "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." He added, "Realizing those benefits at scale depends on infrastructure that can move onchain products through the channels investors and advisors already use, and that is what Prometheum has built."