Securities company Prometheum successfully secures $20 million in funding
Prometheum, a digital asset custodial service provider for financial institutions and institutional investment firms, has announced a successful $20 million capital raise this year. The funds will be used to support the issuance of tokenized securities by major institutions and to hire additional engineering and operational resources to launch new revenue streams.
Aaron Kaplan, founder and co-CEO of Prometheum, believes that financial institutions will increasingly turn to blockchain technology due to its efficiency. The blockchain offers instantaneous settlement and related cost savings, making it an attractive option for issuers looking to create less expensive products.
Prometheum has been operating with an alternative trading system license from the Securities and Exchange Commission (SEC) since 2021, and in 2023, it received a special purpose broker dealer license from the SEC, which allows it to custody digital assets in addition to trading. This expansion of its license has enabled Prometheum to provide a more comprehensive service to its clients.
The digital assets currently custodied by Prometheum include ethereum, The Graph, Uniswap, and Arbitrum. With the funds raised, Prometheum plans to expand its capabilities and offer its services to an even wider range of digital assets.
The holdup in launching a trading platform has been the need for Prometheum to be able to handle the post-trade side, or settlement and custody, of transactions. With the recent capital raise and the addition of new resources, Prometheum is now well-positioned to launch its trading services in the first quarter of 2025.
Prometheum's expansion has also been reflected in its employee base, which grew by 60% in 2024. The 62nd employee of Prometheum will start work on Thursday.
The source of the funds raised by Prometheum was not specified. However, the capital raise contrasts with many crypto and fintech firms in 2024, which have faced challenges due to market volatility and a general slowdown in investment. This move by Prometheum indicates a continued confidence in the potential of blockchain technology and its applications in the financial sector.
Prometheum is one of two firms to have been awarded the special purpose broker dealer license, and its success in raising capital and expanding its operations positions it as a key player in the digital asset custodial and trading space. As it continues to grow and innovate, Prometheum is set to play a significant role in the future of blockchain-based financial services.
The success of the $20 million capital raise by Prometheum will aid in expanding its capabilities to offer services to a broader range of digital assets within the fintech industry. Leveraging technology, Prometheum aims to bolster its position as a key player in the digital asset custodial and trading business, significantly contributing to the future of blockchain-based financial services and business growth.
