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Prometheum Launches Ethereum Custody As Security Offering – Crypto News

Published

2 years ago

May 20, 2024

Dripp

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.

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