The contentious digital asset platform Prometheum has soft launched an Ethereum custody service in preparation for a full crypto service launch later this quarter, which will be overseen by the United States Securities and Exchange Commission.
Prometheum chose ether as the first digital currency for its crypto custodial services in February, and the company had initially intended to launch the service in the first quarter of 2024.
However, it soft-launched the product on Friday with an unidentified small group of organizations, with plans to fully introduce custody services in June. Aaron Kaplan, co-CEO of Prometheum, allegedly informed that trading services would start in a quarter.
“It eliminates a lot of the arguments that things can’t be done under existing laws,” Kaplan told Fortune. “It marks the first time that…an investment contract digital asset security is being custodied and treated under the securities laws.”
Prometheum’s controversial position about the security status of several assets, including Ethereum, allowed it to break out into the digital currency ecosystem. Ethereum is regarded as a security under existing Federal legislation according to Prometheum’s soft launch of the Ethereum custody service.
Prometheum’s Ethereum custody service targets banks, asset managers, and hedge funds focused on cryptocurrencies. Prometheum is set to join the growing Ethereum ecosystem supported by the Financial Industry Regulatory Authority (FINRA) and the SEC.
Prometheum’s debut of its Ethereum custody service has raised security concerns. The SEC’s decision on the spot Ethereum ETF is pending, with rumors suggesting Ethereum may be classified as a security by the SEC under Chairman Gary Gensler.
If this is accomplished, the agency will come up with a valid reason this week to reject VanEck and Ark 21Shares’ bids. But now that Prometheum’s ETH custody service has launched, the organization may be able to point to a strong substitute product.
Also Read: Prometheum Appoints CFO from Morgan Stanley
