Prometheum to Offer Institutional Custody Services for Ether as a Security on Web 3.0
Prometheum, a crypto company approved by U.S. financial regulators as a special purpose broker-dealer (SPBD) for digital asset securities, has announced its plans to offer institutional custody services for Ether (ETH) on the upcoming Web 3.0.
In a Feb. 7 post on X, Prometheum stated that it will treat Ether as a security for its custodial services, meeting the guidelines set by the U.S. Securities and Exchange Commission (SEC) for dealing with crypto asset securities. This move comes after the firm received approval from the U.S. Financial Industry Regulatory Authority in May 2023.
With its trading platform, Prometheum ATS, the company aims to support the trading of certain digital asset securities that are currently only available on crypto exchanges. This allows investors to diversify their portfolio by investing in the “crypto asset” class while still enjoying the guardrails and investor protections afforded by securities laws.
However, it remains to be seen how the SEC will respond to Prometheum offering Ether as a security to investors. In a hearing in April 2023, SEC chair Gary Gensler avoided answering questions on whether ETH qualifies as a security. Cointelegraph reached out to Prometheum co-CEO Aaron Kaplan for comment but did not receive a response at the time of publication.
The approval of spot Bitcoin (BTC) ETFs by the SEC on Jan. 10 has caused a delay in their decision on whether to approve or deny listing and trading spot ETH exchange-traded funds from various asset managers. Many experts predict that the commission will make a decision by May 23, which is the final deadline for VanEck’s spot ETH offering. This delay has raised questions about how to invest in web 3.0 and how it will impact businesses. To understand the purpose of web 3.0 and how it differs from web 2.0, one can learn from experts like Gary Vee and explore resources on how to build a web 3.0 website. With the emergence of web 3.0, it is crucial to learn about its workings and how it will revolutionize the internet as we know it.
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