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Highlights
- Digital assets firm Prometheum has launched Ethereum custody service
- The firm is offering the service with Ethereum as a Security label
- The full crypto service suit is slated for early June
Digital assets platform Prometheum has soft launched Ethereum custody service as it looks to fully launch crypto services later this quarter. Fortune first reported the launch of the product, the first of its kind in the digital currency ecosystem.
Prometheum Stance on Ethereum
Prometheum made its emergence into the digital currency ecosystem based on its controversial stance regarding the security status of many assets including Ethereum. The Ethereum custody service soft launch from Prometheum considers Ethereum a security that is registered under current Federal laws.
While many have argued that it is generally impossible to classify assets like Ethereum as security, Prometheum did. Many industry leaders also posited that it is somewhat impossible to register with the United States Securities and Exchange Commission (SEC), Prometheum managed to secure the approval.
Prometheum first selected Ethereum as the first asset to feature in its custodial service in February. The platform’s co-founder Aaron Kaplan is considered by many as a major proponent or supporter of the US SEC.
“It eliminates a lot of the arguments that things can’t be done under existing laws,” Kaplan said in an interview with Fortune. “It marks the first time that…an investment contract digital asset security is being custodied and treated under the securities laws.”
The Prometheum Ethereum custody service is targeted at asset managers, crypto-focused hedge funds and banks amongst others. With highly controversial backing from both the Financial Industry Regulatory Authority (FINRA) and the SEC, Prometheum is ready to tap into the growing Ethereum ecosystem.
The Ethereum Security Controversy
The Prometheum launch of Ethereum custody service as a security brings enormous concerns in the industry. This launch is coming days to the approval or disapproval of spot Ethereum ETF by the SEC. For a few months now, there are reports the US SEC under Chairman Gary Gensler is likely to classify Ethereum as a security.
If achieved, the agency will find a proper excuse to deny VanEck and Ark 21Shares proposals this week. However, with the launch of Prometheum’s ETH custody service, the agency might have a viable alternative product to point at.
At the moment, the odds of approval for the product is very low, however, some market experts believe there may be an unforeseen last minute approval.
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