The integration of blockchain into financial markets is advancing rapidly, with tokenized securities expected to drive a new era of efficiency and accessibility.
During a recent panel discussion at Benzinga’s Future of Digital Assets conference, Aaron Kaplan, CEO of Prometheum, outlined the potential for blockchain-based securities to streamline processes and unlock new opportunities.
As one of the few firms with a special purpose broker-dealer (SPBD) license, Prometheum is positioned to support the growing adoption of tokenized assets.
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The Promise of Tokenized Securities
Kaplan highlighted the growing interest in tokenized assets, including money markets, treasuries, and structured products. He explained how blockchain technology enhances these products by enabling faster settlement and reducing inefficiencies tied to traditional processes.
“Money market tokens, treasuries, and structured products are already moving on chain. There's a real advantage—quicker settlement and the ability to unlock collateral value,” Kaplan said. He added that tokenized securities are no longer limited to pilot programs, as infrastructure advancements are enabling broader adoption.
Addressing Existing Market Challenges
Despite blockchain’s advantages, Kaplan pointed to inefficiencies in current financial systems, such as delayed settlement and reliance on manual processes. He emphasized that tokenization offers a practical solution to these challenges by creating a streamlined, automated system.
“Why did trading go from paper to electronic? Because it was more efficient and saved money,” Kaplan said. “The same thing will occur here for different sub-assets within securities as they move on chain,” Kaplan noted that these efficiencies extend beyond financial gains, reducing human errors and eliminating broken trades through instant settlement.
Institutional Interest Grows
Large institutions like BlackRock and Franklin Templeton have entered the tokenization space with tokenized money market funds, reflecting the increasing acceptance of blockchain in traditional finance. However, Kaplan pointed out that while these products are innovative, they lack public trading and settlement infrastructure.
“These products aren't publicly available because there's no infrastructure. Prometheum creates that infrastructure,” Kaplan said. He explained that by addressing this gap, Prometheum supports institutions in delivering tokenized securities to a broader market while maintaining compliance with regulatory requirements.
Looking Ahead to 2025
Kaplan predicted that the next two years will surge in blockchain-based securities as institutions continue to adopt tokenization for its efficiency and cost benefits. With its SPBD license and infrastructure, Prometheum is prepared to handle the increasing demand for compliant market solutions.
“As securities migrate on the chain and the $100 trillion securities market comes on the chain, Prometheum is there to take market share,” Kaplan said.
While challenges remain, the growing focus on tokenized securities signals a turning point for the financial industry. By providing the tools and infrastructure needed, Kaplan suggested that firms like Prometheum are well-positioned to lead the transition from traditional systems to blockchain-powered finance.
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