Prometheum Adds Uniswap and Arbitrum as Crypto Securities

Prometheum’s New Custody Services

U.S. crypto firm Prometheum is set to broaden its custody services by including Uniswap (UNI) and Arbitrum (ARB) tokens alongside Ethereum’s ether (ETH). Starting in September 2024, Prometheum will accept these tokens as part of its custodial platform, marking a significant expansion in its service offerings.

Prometheum’s decision to treat UNI and ARB as securities aligns with the Securities and Exchange Commission’s (SEC) new digital asset transaction stipulations. However, this move has sparked controversy within the crypto industry.

Industry Reactions and Controversies

Following an initial trial with Ethereum, Prometheum aims to become a comprehensive platform for crypto transactions by integrating UNI and ARB tokens into its custodial services. This decision has drawn mixed reactions from the crypto community:

• Uniswap Labs’ Opposition: In May, Uniswap Labs criticized the SEC’s classification of the UNI token as a security, accusing the agency of attempting to expand its jurisdiction and control over the market. They described the SEC’s legal arguments as “weak.”

Prometheum’s Vision and Statement

Benjamin Kaplan, CEO of Prometheum Capital, explained the firm’s motivation behind including UNI and ARB tokens:

“Prometheum Capital intends to provide investors access to the top digital assets over time, as well as tokenized assets, debt, equities, exchange-traded funds (ETFs), mutual funds, options, money market funds, and other investment contract products that are issued and transferred on a blockchain.”

Compliance and Industry Impact

Prometheum differentiates itself from other players in the crypto space by adhering to SEC regulations. The firm’s commitment to compliance positions it as a unique entity in the U.S. crypto market, operating as a registered crypto securities platform. This stance has garnered both praise and scrutiny:

• SEC Chair Gary Gensler’s Endorsement: Gensler has praised Prometheum as a potential model for successful crypto implementation.
• Revenue Transparency: Despite the praise, Prometheum has yet to disclose any earnings reviews or details on how the company will generate revenue from its operations.

As Prometheum moves forward with its expanded custody services, its alignment with SEC regulations will continue to shape its role and influence in the evolving landscape of digital asset management.