Prometheum Expands Custody Services with Uniswap and Arbitrum
Digital assets firm Prometheum has unveiled its latest offering: custody services for Uniswap (UNI) and Arbitrum (ARB) alongside Ethereum (ETH) for US clients. This follows the firm’s earlier launch of Ethereum custody as a security offering earlier this year. Following the announcement, the UNI price surged by about 7%, while ARB saw a modest increase of 1%.
Prometheum’s Strategic Move in the Digital Asset Space
Prometheum Inc., through its subsidiary, has announced the integration of Uniswap and Arbitrum into its custodial platform, marking a significant expansion of its digital asset security services. This latest addition allows institutional and corporate clients in the US to securely store these assets alongside ETH.
The combined market valuation of these three assets—UNI, ARB, and ETH—is nearly $320 billion, underscoring their dominance and importance in the digital asset market. Prometheum’s approach to custody services involves leveraging blockchain technology to record on-chain ownership, thereby eliminating the need for traditional intermediaries such as transfer agents.
Key Benefits of Prometheum’s Custody Services
- Enhanced transparency through blockchain-based ownership recording.
- Cost reduction by eliminating traditional intermediaries.
- Increased attractiveness to institutional investors.
According to Prometheum, these features are designed to provide a regulated and secure environment for traders, adhering to federal securities laws.
Market Reaction: UNI Price Rallies 7%
Following the announcement, the UNI price saw a significant rally, increasing nearly 7% to trade at $6.59. Its one-day trading volume also spiked by 18% to $97.69 million. In contrast, ARB experienced a more modest 1% increase to $0.5378, with its 24-hour trading volume decreasing by 10% to $133.27 million.
Prometheum’s Broader Expansion Plans
This launch is part of Prometheum’s broader strategy to expand its custody services throughout Q3 2024. The company plans to include additional digital assets such as:
- Debt instruments
- Equities
- ETFs and mutual funds
- Options and money market funds
All of these assets will be issued and transferred on a blockchain, aligning with Prometheum’s goal to adhere to the U.S. Securities and Exchange Commission’s (SEC) stance on treating digital assets as securities.
Controversy Surrounding Prometheum’s Approach
Prometheum’s decision to classify UNI and ARB as securities aligns with the SEC’s viewpoint that most digital assets should fall under its jurisdiction. However, this approach has sparked controversy within the crypto industry, where many believe that digital assets should not be categorized as securities.
Notably, Prometheum’s earlier announcement of Ethereum custody also raised concerns in the crypto community, particularly regarding potential conflicts with the Commodity Futures Trading Commission (CFTC).
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