Prometheum Outlines Legal Framework for Tokenized US Equities

Under the proposed arrangement, Cede & Co. will remain the registered owner of the underlying shares, maintaining the industry standard for publicly traded equities. According to co-CEO Aaron Kaplan, tokenholders will not appear on official corporate books; instead, they will hold securities entitlements protected under Article 8 of the Uniform Commercial Code. This structure ensures that investors receive legal backing through the Securities and Exchange Commission’s Customer Protection Rule and the Securities Investor Protection Act, independent of the blockchain ledger.

This model seeks to differentiate itself from synthetic products or special-purpose vehicles that often offer only contractual claims rather than direct interests in the underlying assets. Prometheum, in collaboration with HashKey Digital Asset Group and Velocity Capital, intends for these tokens to function as digital twins of conventional securities. When investors choose to exit their positions, they may convert tokens into physical shares or liquidate them for cash via standard DTC processes. While the initiative targets international distribution, the pilot remains contingent on final regulatory clearances, technical integration, and the selection of specific jurisdictions for the initial rollout.