U.S. crypto firm Prometheum plans to broaden its custody services by including Uniswap (UNI) and Arbitrum (ARB) tokens as securities. Starting in September, the custodial platform will accept both UNI and ARB tokens alongside Ethereum’s ether.
The firm’s decision to treat these crypto assets as securities aligns with the SEC’s new digital asset transaction stipulations. However, this move puts the firm at odds with a significant part of the crypto industry.
Prometheum expands custody services amid industry controversy
Following an initial trial with Ethereum as a security, Prometheum aims to become a one-stop shop for crypto transactions, integrating UNI and ARB tokens into its custodial services.
However, in May, Uniswap Labs disapproved of the SEC’s consideration of the UNI token as a security. They claimed the watchdog was only trying to expand their jurisdiction and control larger parts of the market, calling their legal arguments ‘weak’.
When asked why their platform chose to include UNI and ARB, Benjamin Kaplan, CEO of subsidiary Prometheum Capital, said:
“Prometheum Capital intends to provide investors access to the top digital assets over time, as well as tokenized assets, debt, equities, [exchange traded funds], mutual funds, options, money market funds and other investment contract products that are issued and transferred on a blockchain.“
Prometheum distinguishes itself with SEC compliance, drawing praise and scrutiny
Prometheum has set itself apart from the rest of the crypto industry by supporting the Securities and Exchanges Commission’s insistence that crypto should be embraced as investment assets—trade securities.
The firm clarified that it will have its custodian platform and trading system under different entities, as per the SEC’s regulatory framework. Its stance on following SEC guidelines makes it the only U.S.-registered crypto securities platform.
SEC Chair Gary Gensler has praised the custodial platform, tagging it as a potential example of successful crypto implementation. However, the trading platform has yet to share any earnings review or explain how the company will earn its revenue.
