Anchorage Digital Bank – a leading entity in virtual asset custody – and crypto trading platform Prometheum are reportedly moving to the final stage for obtaining greenlight to launch an alternative trading system (ATS).
Specifically, Prometheum Ember ATS – also referred to as PEATS and focuses on crypto investors – is reportedly looking to make alternative trading system tech available for virtual assets.
Traders will reportedly be able to experience PEATS after the final approval stage by the US SEC is completed.
PEATS is reportedly subjected to the SEC’s rigorous “Three-Step Process” for approving a public ATS at the moment. Upon official release, Anchorage will provide custodial services to every digital asset whose transactions facilitated by PEATS.
Generally seen in traditional financial markets, an ATS reportedly functions as a public platform that matches the sell and purchase orders of its users. Hence, it does not fall under the regulation applied to an exchange.
ATS accounts are the representative of a substantial share of liquidity found on publicly-traded markets worldwide.
Aaron Kaplan, founder and current co-Head of Prometheum, offers his explanation regarding the importance of an ATS system for cryptocurrency markets.
“A public ATS for digital assets will allow more efficient order matching and better price discovery, bringing smaller price spreads and simplified participation for all investors.”
Nathan McCauley, Anchorage’s president and CEO, said “regulatory clarity is the building block for enabling broad participation of digital assets.”
Upon its release, PEATS is reportedly expected to become a full-service electronic market offering on-chain custody and settlement. The regulation for the product will be handled by the SEC and Financial Industry Regulatory Authority (FINRA).