Prometheum Ember Capital, a subsidiary of Prometheum, has received approval from the Financial Industry Regulatory Authority (FINRA) as a special purpose intermediary (SPBD) for digital asset securities. This approval allows Prometheum to hold digital asset securities on behalf of retail and institutional clients.
FINRA’s designation of Prometheum Ember Capital as an SPBD makes it a qualified custodian, subject to the provisions of the United States Stock Exchange Act of 1934. It is the first company to offer custody of digital assets as a qualified custodian. FINRA is the self-regulatory body for the US securities industry. Other digital asset custody providers have state licenses.
Aaron Kaplan, co-CEO of Prometheum, stated the following:
“U.S. digital asset investors currently hold cryptocurrency securities in custody through platforms that do not offer the same customer protections SEA 15c3-3 [Regla] required by federal securities laws.
Prometheum Ember Capital will offer custody services to institutional and retail clients. Individual investors are currently invited to sign up for a waiting list on the company’s website.
The United States Securities and Exchange Commission (SEC) has recently been examining traditional investment firms and crypto firms that offer custody of digital assets.. New SEC rules could force crypto companies to move their custodial assets to a separate entity. The regulator’s proposals have sparked controversy in the cryptocurrency community and among lawmakers.
Prometheum Ember Capital has made history as the 1st SEC-registered broker-dealer and FINRA member firm approved to operate as a Special Purpose Broker-Dealer (SPBD) for digital asset securities. Learn about how we continue to move the industry forward: https://t.co/owwoQbQ4Zd pic.twitter.com/kCySyPg9Qe
—Prometheum (@PrometheumInc) May 23, 2023
Prometheum Ember Capital has made history as the first SEC registered broker-dealer and FINRA member firm approved to operate as a special purpose broker-dealer (SPBD) for digital asset securities. Learn how we continue to move the industry forward:
Another Prometheum affiliate, Prometheum ATS, is registered with FINRA to provide alternative trading services, such as trading, clearing, settlement and custody of digital asset values. This service, Launched in October, it aims to integrate regulated trading of digital assets into traditional trading systems.
Prometheum partnered with Anchor Digital Bank for this service. It was also intended for institutional and retail investors.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.