Prometheum Charts New Territory with Ethereum Custody Announcement
Prometheum, the first U.S. special purpose broker-dealer authorized for custody, clearing, and settlement of digital asset securities, has unveiled its plans to offer custodial services for the cryptocurrency ethereum (ETH).
The company has initiated the signup process for various financial entities, including asset management firms, hedge funds, registered investment advisors (RIAs), and banks, gearing up for the imminent launch of its custodial services. Last year, Prometheum faced scrutiny and a probe initiated by the Financial Services Committee (FSC) after its co-CEO’s testimony before the U.S. House of Representatives.
Despite challenges, the Financial Industry Regulatory Authority (FINRA) authorized Prometheum to clear digital assets in January, paving the way for its announcement to provide custodial services for ether. Prometheum’s move is particularly noteworthy as ethereum’s (ETH) regulatory status remains unclear, unlike bitcoin (BTC), which is widely recognized as a commodity. While the SEC has yet to classify ETH explicitly, Chairman Rostin Behnam of the U.S. Commodity Futures Trading Commission (CFTC) has stated his view that ether qualifies as a commodity. This development aligns with the ongoing SEC deliberations on whether to approve a spot ETH exchange-traded fund (ETF).
Clever Robot News Desk 9th February 2024
