Arete Wealth Management, LLC, Network 1 Financial Securities, Inc., and a clearing broker-dealer named as inaugural correspondent clearing clients
Prometheum Capital clears the first ETH transaction within a traditional brokerage account
NEW YORK--(BUSINESS WIRE)--Prometheum Inc. (“Prometheum”), a market infrastructure provider for crypto assets, today announced the launch of Prometheum Capital's Digital Brokerage Solutions, a suite of correspondent clearing, custody, and trading services that enable broker-dealers to offer clients access to the full spectrum of crypto assets – including digitally-native securities, tokenized securities, and select crypto tokens – through traditional brokerage accounts. Inaugural correspondent clearing clients are Arete Wealth Management, LLC (“Arete”), Network 1 Financial Securities, Inc. ("Network 1")1, and a clearing broker-dealer.
Prometheum Capital, a FINRA member and SEC-registered crypto asset clearing broker-dealer and subsidiary of Prometheum, provides broker-dealers and RIAs access to crypto assets through familiar compliance frameworks. Broker-dealers and their clients will interact with crypto assets through brokerage workflows and existing account structures. Prometheum Capital offers correspondent clearing services to both introducing and clearing broker-dealers, on a fully disclosed and omnibus basis, respectively.
In connection with the launch, Prometheum Capital cleared and settled the first ETH transaction directly in a U.S. brokerage account, not through an ETF or ETP structure. This marks the first time ETH has been purchased within a traditional U.S. broker-dealer account. Crypto trading will be delivered through Prometheum Capital's integration with Talos, a leading institutional digital asset trading technology provider.
"Broker-dealers are the engine of U.S. capital markets, and the launch of Prometheum Capital’s Digital Brokerage Solutions enables these firms and RIAs to drive the digital markets transformation," said Aaron Kaplan, Founder and co-CEO of Prometheum Inc. "The forward-thinking firms partnering with us today are showing the industry how crypto assets will reach investors at scale through the brokerage relationships investors already know and trust."
Arete Wealth, a premier provider of alternative investment solutions and capital markets expertise, is a full-service FINRA member broker-dealer and registered investment advisory firm, serving high-net-worth individuals and institutions through a network of more than 100 offices and 250 registered advisors nationwide. Arete has entered into a fully disclosed correspondent clearing agreement with Prometheum Capital that will enable its advisor network to offer crypto and digital assets directly to client brokerage accounts through Arete's existing wealth management platform.
"At Arete, our advisors expect access to cutting-edge alternative investments as part of a comprehensive investment strategy. That's been central to our value proposition since day one," said David Levine, CEO of Arete Wealth. "Adding digital and crypto assets through Prometheum Capital's fully disclosed clearing means our advisors can manage clients’ investments and exposure to ETH and digital securities. Advising and managing clients’ exposure to digital assets will enable our advisor network to succeed as crypto assets become mainstream."
Network 1 is a full-service FINRA member broker-dealer serving high-net-worth individuals, institutional investors, managed pension funds, and hedge funds. Network 1 has entered into an agreement with Prometheum Capital enabling it to extend ETH access directly to its clients’ brokerage accounts.
“Network 1 is excited to be at the start of a new era where many financial services and opportunities will be transacted in the digital and blockchain world, that will lead to a faster and more transparent environment,” said Damon D. Testaverde, Chairman, Network 1 Financial Securities, Inc.
The clearing broker-dealer entered into an omnibus correspondent clearing agreement with Prometheum Capital that will enable the firm to extend crypto asset access across its correspondent client base through a consolidated crypto asset custody account, leveraging Prometheum Capital’s infrastructure-as-a-service model for custody, clearing, and settlement.
Firms leveraging Prometheum Capital’s Digital Brokerage Solutions can offer crypto assets through Prometheum Capital’s correspondent clearing framework, including support for:
- Introducing broker-dealers and clearing broker-dealers, served through fully disclosed and omnibus clearing models that enable firms to extend crypto asset access to customer accounts with minimal operational disruption.
- Broker-dealers and RIAs seeking crypto asset exposure, including ETH, supporting clients with crypto asset allocation strategies and long-term positioning as securities increasingly move onto blockchain rails.
The launch of Prometheum Capital's Digital Brokerage Solutions comes amid accelerating issuance of securities products on blockchain networks and increasing demand from broker-dealers, RIAs, and wealth intermediaries seeking to offer crypto assets through traditional brokerage accounts. Prometheum Capital's Digital Brokerage Solutions serve as the distribution infrastructure that connects crypto asset capital formation to the broker-dealer channel.
Learn more about Prometheum Capital's Digital Brokerage Solutions or register for our June 3 webinar.
About Prometheum Inc.
Prometheum Inc. supports crypto assets including select crypto tokens, tokenized securities, and digitally-native securities through its broker-dealer network and market infrastructure for the issuance, distribution, trading, and custody of crypto assets. Its broker-dealer network includes Prometheum Capital (custody, clearing, and settlement), ProFinancial (issuance and distribution), Prometheum ATS (secondary market trading), and an SEC-registered digital transfer agent, Prometheum Coinery. For more information, please visit https://www.prometheum.com.
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1 | Pending FINRA approval | |
Contacts
Media:
Jon Brubaker, head of communications
jbrubaker@prometheum.com
908-399-1254