Prometheum launched custody service that treats ETH as security

The digital asset platform launched its controversial Ethereum custody service on May 17 and plans to fully launch it next month.

Crypto asset trading and custody company Prometheum subtly launched its controversial Ether custody service

, which handles the crypto asset as a value.

According to a May 20 Fortune story, the escrow solution has been rolled out to select enterprises on May 17, with a full-scale launch planned for sometime in June.

Prometheum is targeting its services towards asset management firms, hedge funds, banks, registered investment advisors and aims to expand to retail clients later in 2024.

Prometheum came to the fore in June last year after its co-founder and co-CEO, Aaron Kaplan, testified before a US House of Representatives Committee, apparently supporting the regulation of cryptocurrencies under current securities laws; a view also shared by the Securities and Exchange Commission.

In February, Prometheum suggested it would handle Ether as a security/investment contract when it launches custody services on its platform later in the year; which generated criticism from the crypto community.

“It eliminates a lot of the arguments that things can't be done under existing laws,” explained Aaron Kaplan, one of the firm's CEOs.

“It marks the first time that… a crypto asset investment contract is being safeguarded and treated under securities laws.”

However, reports have emerged that the SEC is asking applicants to expedite their 19b-4 filings, raising hopes again.

This resulted in Bloomberg ETF analysts Eric Balchunas and James Seyffart increasing their estimated odds of a spot ETH ETF being approved from 25% to 75%.