Prometheum, a digital asset trading and custody firm, has reportedly launched its Ether (ETH) custody service, treating digital assets as securities. The service was initially rolled out to select companies on May 17, with a full-scale launch scheduled for June. Prometheum is targeting asset management firms, hedge funds, banks, and investment advisers, with plans to expand to retail clients in the future.
Last year, Prometheum gained attention when its co-founder and co-CEO, Aaron Kaplan, testified before the United States House Committee, expressing support for regulating crypto under existing securities laws, a view shared by the Securities and Exchange Commission (SEC). In February, Prometheum announced that it would treat Ether as a security when launching its custodial services, sparking criticism from the crypto community. However, recent reports suggest that the SEC is urging applicants to expedite their 19b-4 filings, raising hopes for the approval of spot Ether exchange-traded funds (ETFs).
Prometheum was founded by Aaron and Benjamin Kaplan in 2017 and gained recognition in June 2023 when it obtained a broker-dealer license from the SEC and the Financial Industry Regulatory Authority. However, the launch of Prometheum’s Ether custody service may create a rift between the SEC and the U.S. commodities regulator. The Commodity Futures Trading Commission, which categorizes Ether as a commodity, warned in March that such a product would conflict with U.S. financial market rules.
Overall, Prometheum’s Ether custody service launch has generated both excitement and concern within the crypto community, as its treatment of Ether as a security potentially impacts the approval of spot Ether ETFs.