The Problem with Existing Technology

Investors and Traders
Currently, investors and traders lack a venue providing a regulated and compliant cryptosecurity trading in the U.S. As history proves, crypto markets, such as those trading cryptocurrencIES, like Bitcoin and Ether, are confusing and have a high degree of associated risk resulting in harm to the investors and traders.

Companies face extreme expense, time and difficulty in going public through an IPO. Without a high valuation and extreme capital, companies are left without a vehicle for a public offering. Issuing a token for capital formation purposes had been curtailed with the release of the DAO report. With subsequent guidance and legal action by US regulators, companies lack sufficient means to publicly distribute cryptosecurities.

Broker-dealers are limited to “old” asset classes that function on 20th century systems that fail to meet their and their customers’ needs. Broker-dealers and other market participants rely on databases, FTPs and manual confirmations for secure electronic bookkeeping which are archaic methods to say the least. These archaic methodologies breed inefficiencies which most notable is clearing and settlement taking three days (T+3).

DApp Developers
Developing applications that work with regulated financial instruments are difficult but developing applications that also run on a public distributed infrastructure is even harder! Existing public blockchains do not provide DApp developers the stability and surety required to meet regulatory and other thresholds.

Token Standards
The open and effectively distributed development of, for example, smart contract standards (e.g. ERC-20, ERC-1400) to support user demand for features, has proven to be a valuable and engaging way of identifying feature requirements but doesn’t provide assurances needed for compliant security tokens.

Integrating with Regulated Infrastructure
The fundamental technologies required to provide a modern security token infrastructure on a blockchain exist, but those technologies haven’t yet been combined to meet the needs of regulators, investors and token users.

Stability and Scale
Because they rely on immature and experimental technologies, existing public blockchains have failed to scale and achieve stability. Scalability and stability are vital when a broad set of requirements are competing for attention.

Prometheum’s Vertically Integrated Solution

Regulated Issuance Platform

  • SST will be Reg A+ issued and SEC qualified
  • Automated know-your-customer (KYC) and anti-money laundering (AML)
  • Independently verified offers
  • Investors access to detailed issuer profiles
  • Compliant building blocks for SST functionality
  • Automated issuer guidance and templates
  • Integrated escrow and banking services
  • Administrative software for issuing companies
  • Open to all accredited and non-accredited investors

Regulated Market

  • U.S. securities law compliant ATS
  • SSTs can be traded by anyone, anytime, upon distribution
  • Fully electronic market modeled after US Equity markets like NASDAQ/NYSE
  • Maker/Taker liquidity model rewards participants and encourages trading
  • Blockchain connected
  • Real-time data and SST research
  • Real-time and historical surveillance protects investors and holds issuers accountable
  • Risk monitoring ensures investor protection, issuer accountability and market integrity
  • Transparency and extensive public information regarding each listed company

Clearing, Settlement and Custody

  • Clearing and settlement of transactions within 24 hours
  • Vertically integrated infrastructure
  • Proprietary middleware connects the Prometheum Blockchain to existing clearing systems
  • FIX engine connects to existing broker-dealer systems and reports
  • Cold storage ensures secure custody of SSTs

Prometheum's Proprietary Blockchain

  • Our Ember-X protocol employs smart contracts to perform automated financial compliance
  • Smart Security Tokens (SSTs) can be blockchain securities or utility tokens depending on the type of transaction
  • Our proprietary wallet structure provides dynamic transactional and custody solutions for SST holders
  • Our consensus mechanism allows the Prometheum Blockchain to support a high level of throughput and the scalability necessary for an emerging securities market
  • Trading records and clearing instructions are reconciled on the blockchain resulting in more security, redundancy and settlement within 24 hours
Greater Than the Sum of its Parts
Issuance Platform
  • Automated KYC/AML
  • Administrative software for issuers
  • Blockchain securities are immediately tradable after distribution
  • Available to retail investors
  • Integrated escrow and banking services
  • Compliant building blocks for required SST functionality
  • Alternative Trading System will be regulated
  • FIX connectivity for brokers
  • Real-time data and token research
  • Blockchain native
  • Proprietary order entry and API
  • Based on US equities markets structure
  • Designed with retail customers in mind
  • Real time level 1-2 data, prints, charts, historical data
  • Built-in KYC/AML
  • API, advanced order types
  • Administrative tool for brokers
  • Multi OS and device support
Clearing, Settlement and Custody
  • SSTs clear and settle as securities and custody using cold storage
  • Proprietary middleware connects the Prometheum blockchain to existing clearing systems
  • Trades can clear and settle within one day
  • Blockchain integrated for security, reconciliation, decentralization and data storage