Key Approval from FINRA for Digital Asset Custody
In a groundbreaking move, Prometheum Ember Capital has secured approval from the Financial Industry Regulatory Authority (FINRA) to operate as a Special Purpose Broker-Dealer (SPBD) focusing on digital asset securities. This designation allows them to custody digital asset securities for both retail and institutional clients, marking a significant milestone in the evolving landscape of digital finance.
The Pioneers: Setting a New Standard
Prometheum Ember Capital stands tall as the first qualified custodian for digital asset securities. Under the provisions of the United States Exchange Act of 1934, Prometheum has managed to carve a niche that other players in the industry have yet to achieve, often operating under state licenses instead.
What Does This Mean for Investors?
As co-CEO Aaron Kaplan points out, many U.S. digital asset investors are currently using custody services that lack the robust protections required by federal securities law. This often leaves them vulnerable in a chaotic market. With Prometheum’s new custodial services, investors will be able to enjoy the customer protections mandated by the SEA 15c3-3 rule.
Challenges on the Horizon: Scrutiny from the SEC
Despite the bright outlook, hurdles loom ahead. The U.S. Securities and Exchange Commission (SEC) has ramped up scrutiny on crypto and digital asset custody firms, with new rules that may require firms to segregate their custodied assets. This regulatory landscape is causing waves; and you can bet it’s ripe with controversy.
A Collaborative Future: Integration with Legacy Systems
Prometheum isn’t stopping at digital asset custody alone. Another subsidiary, Prometheum ATS, has joined forces with Anchorage Digital Bank, providing alternative trading services for digital asset securities that include trading, clearing, settlement, and custody. They intend to effortlessly integrate regulated digital asset trading with the existing systems of stock markets, making everyone’s life a bit easier.
So whether you’re an institutional giant or a retail investor, the doors are opening. Want to get involved? You can hop on the waitlist over at Prometheum’s website and be among the first to take advantage of their services!
