Prometheum’s New Custodial Offerings
Prometheum, a digital asset trading and custody firm, is set to integrate Uniswap (UNI) and Arbitrum (ARB) into its custodial platform alongside Ether (ETH). These tokens will be classified as “digital asset securities” and the custodial services for these assets are expected to launch in the third quarter of the year.
According to a recent tweet from Prometheum:
“We’re excited to announce the addition of the following #digitalassetsecurities, Uniswap (UNI) and Arbitrum (ARB), to the Prometheum Capital custodial platform. Institutional and corporate clients will be able to custody Uniswap (UNI), Arbitrum (ARB), and Ethereum’s Ether (ETH).”
Controversy Over Classification
Prometheum’s decision to treat UNI and ARB as securities has drawn criticism, particularly given the decentralized nature of these tokens. Uniswap, known for its decentralized exchange, has previously argued that UNI is not a security, likening its decentralization to Bitcoin (BTC) and Ether (ETH), which are not classified as securities.
Similarly, Arbitrum, a decentralized autonomous organization (DAO), has faced scrutiny, especially following a recent vote on August 15 to implement ARB staking.
Expanding Custodial Services
Prometheum aims to establish itself as a leader in the digital asset custody market. Through its subsidiary, Prometheum Capital, the company plans to offer custody services for ETH, ARB, and UNI. Prometheum Capital is a Special Purpose Broker-Dealer (SPBD) that is SEC-registered and a FINRA member.
Initially, Prometheum intended to start these services in early 2024, but the launch has been rescheduled to the third quarter. Future plans include expanding their portfolio to include blockchain-based debt, equities, ETFs, mutual funds, options, and other investment contracts.
Regulatory Tensions: SEC vs. CFTC
The decision to classify ETH as a security has already faced criticism, particularly in light of the CFTC’s classification of ETH as a commodity. CFTC Chairman Rostin Behnam has raised concerns about potential regulatory conflicts. Additionally, the SEC’s stance on UNI being a security has been contested by Uniswap Labs, which argues that such claims are an overreach of the SEC’s authority.
Following the announcement, both UNI and ARB tokens have seen a positive market reaction. UNI has risen by 10%, while ARB has increased by 1% in the past 24 hours.
Ecosystem
Research
News Network
About