Digital asset securities (DAS) are any security issued and transferred on a blockchain that meet the definition of a 'security' under the Securities Act of 1933. That can include but is not limited to:
Direct on-chain issuance and tokenization are distinct methods for creating digital asset securities on the blockchain, with subtle but important differences.
On-chain issuance refers to designing and issuing blockchain-native securities directly on the blockchain without any pre-existing physical or traditional asset. This approach eliminates the need to mirror assets or duplicate records on- and off-chain, reducing costs and complexity. Blockchain native securities are digital, enabling real-time settlement and greater programmability.
In contrast, tokenization refers to the process of representing traditional assets—such as stocks or real estate—as digital tokens recorded on a blockchain. This process requires linking the token to the underlying asset, often through legal or custodial arrangements. Tokenized securities still rely on traditional financial intermediaries (such as the DTCC) and centralized ledgers, resulting in duplicated on-chain and off-chain records, costs, and increasing inefficiencies.
The potential growth of digital asset securities is vast. In the U.S. alone, there is over $100 trillion in existing traditional securities that can be moved on-chain. New and innovative blockchain-native financial products are emerging - such as securitized revenue streams or private market investments - represent untapped opportunities.
100T+*
*estimated US fixed + equity market capital according to SIFMA’s 2024 Capital Markets Fact Book
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Digital asset securities may not be suitable for all investors. Investors should note that investing or trading in digital asset securities could involve substantial risks, including no guarantee of returns, costs associated with selling and purchasing, and no assurance of liquidity, which could impact their price and the investor's ability to sell, and possible loss of principal invested. There is always the potential of losing part or all of your money when you invest in digital asset securities.
Not SIPC or FDIC insured. For further risk disclosure information see ProATS Digital Asset Securities Risk Disclosure, Prometheum Capital LLC Digital Asset Securities Risk Disclosure, and Regulatory Considerations sections in Disclosures.
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