This FAQ covers the essentials about Prometheum, a crypto firm that has taken a unique path by operating as a SEC-registered broker-dealer and alternative trading system. Here, you'll find clear answers to common questions about what Prometheum is, how it works, and what it means for the crypto industry.

What is Prometheum?

Prometheum is a financial technology company that operates a SEC-registered broker-dealer and an alternative trading system (ATS) for digital asset securities.

Unlike many crypto exchanges that operate outside traditional securities regulations, Prometheum aims to comply fully with U.S. federal securities laws. It provides a platform for the trading and custody of digital assets that are classified as securities, positioning itself as a bridge between the traditional financial system and the crypto market.

How does Prometheum differ from other crypto exchanges?

Prometheum distinguishes itself by operating as a fully regulated entity under the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Most crypto exchanges, such as Coinbase or Binance, operate as money services businesses or unregulated platforms, often facing regulatory uncertainty. Prometheum, however, adheres to the same rules as traditional broker-dealers, including customer protection, custody, and anti-money laundering requirements. This makes it one of the few platforms where digital asset securities can be traded in compliance with U.S. federal securities laws.

Why is Prometheum important for the crypto industry?

Prometheum is significant because it represents a regulatory-first approach to crypto trading, which could serve as a model for future industry compliance.

By obtaining SEC and FINRA approvals, Prometheum demonstrates that digital asset securities can be traded within existing U.S. securities laws. This could help reduce regulatory uncertainty for institutional investors and pave the way for broader adoption of tokenized securities. However, some critics argue that its focus on securities may limit its appeal to retail investors who are used to trading cryptocurrencies like Bitcoin and Ethereum.

Who founded Prometheum and when?

Prometheum was co-founded in 2017 by Aaron Kaplan and his brother Benjamin Kaplan.

Aaron Kaplan serves as the co-CEO and has been a vocal advocate for regulatory compliance in the crypto space. The company is headquartered in New York and has raised significant funding from investors, including a notable partnership with the crypto-focused investment firm, Gemini, which invested in Prometheum's Series A round.

What types of digital assets does Prometheum support?

Prometheum focuses on digital asset securities, which are tokens that meet the definition of a security under U.S. law.

Examples include tokens issued in initial coin offerings (ICOs) that are deemed securities, as well as tokenized versions of traditional securities like stocks or bonds. Prometheum does not support cryptocurrencies like Bitcoin or Ethereum, which are treated as commodities by U.S. regulators. The platform's primary aim is to provide a compliant venue for trading and custody of these security tokens.

What are the pros and cons of using Prometheum?

Using Prometheum offers several advantages, but also has drawbacks.

  • Pros: Full regulatory compliance, institutional-grade custody, and a clear legal framework for digital asset securities.
  • Cons: Limited asset selection (no major cryptocurrencies), potentially higher fees due to regulatory overhead, and a more complex onboarding process.

For investors seeking a regulated environment, Prometheum may be attractive. However, those looking to trade popular cryptocurrencies will likely need to use other platforms.

When did Prometheum launch its trading platform?

Prometheum launched its alternative trading system (ATS) in 2024, after receiving FINRA approval in 2023.

The platform initially offered custody services for digital asset securities, with trading capabilities following. As of 2026, Prometheum continues to expand its offerings, but it has been cautious in its rollout, prioritizing compliance and operational readiness over rapid growth.

How does Prometheum handle custody of digital assets?

Prometheum provides qualified custody for digital asset securities, meaning it holds client assets in accordance with SEC custody rules.

This involves segregating client assets from the firm's own assets, using secure cold storage, and maintaining insurance coverage. Additionally, Prometheum undergoes regular audits and complies with strict reporting requirements to ensure the safety of client funds. This level of custody is a key differentiator from unregulated exchanges, where counterparty risk can be a concern.

What are the future plans for Prometheum?

Prometheum plans to expand its range of digital asset securities and grow its institutional client base.

The company has expressed interest in tokenizing traditional securities, such as stocks and bonds, and listing them on its platform. It also aims to partner with other financial institutions to offer compliant crypto services. However, Prometheum's growth will depend on regulatory developments and market demand for security tokens.

Final Thoughts

Prometheum stands out as a pioneer in the regulated crypto space, offering a compliant alternative to unlicensed exchanges. Its focus on digital asset securities may limit its appeal to mainstream crypto users, but it provides a viable path for institutions and investors seeking regulatory clarity.

As the crypto industry evolves, Prometheum's model could become more prevalent, especially if regulators push for greater compliance. Whether it succeeds in the long term will depend on its ability to attract liquidity and adapt to changing market conditions. For now, Prometheum remains a noteworthy experiment in bridging traditional finance and blockchain technology.