Prometheum Expands Digital Asset Custody Services

Digital asset firm Prometheum’s custodial arm plans to add two new “digital asset securities” to its offerings: Uniswap (UNI) and Arbitrum (ARB). This announcement follows their soft launch of ether custody services.

Institutional and corporate clients will now be able to custody ether, UNI, and ARB through Prometheum Capital. The firm aims to launch custodial services for institutional investors by the third quarter of this year.

Prometheum Capital is committed to expanding its digital asset custody and trading offerings, supporting a range of assets including debt, equities, ETFs, mutual funds, options, and other products on the blockchain.

Despite facing scrutiny from the digital asset industry, Prometheum secured a special purpose broker-dealer license from the SEC last year, marking a notable milestone as the first firm authorized to trade and custody digital assets. Additionally, FINRA granted permission for the firm to provide crypto clearing and settlement services.

The firm has encountered criticism, including allegations from the Blockchain Association regarding its deal with the SEC. However, Prometheum maintains that compliance with securities laws is achievable.

There is ongoing debate over whether certain cryptocurrencies are securities or commodities. While SEC Chair Gary Gensler has stated that most cryptocurrencies are securities, CFTC Chair Rostin Behnam considers ether a commodity. The SEC’s classification of ARB and UNI remains unclear.

Prometheum’s press release hinted at impending changes in the regulatory environment affecting digital asset securities, emphasizing that legislation and regulatory developments could influence the classification and custody of these assets in the future.

CEO Benjamin Kaplan stated that Prometheum engages with regulators as part of routine business, adhering to strict internal procedures for compliance, especially when incorporating new assets like UNI and ARB into their custody platform.

Update: Aug. 21, 6:15 p.m. UTC to include comments from Kaplan.