Prometheum Ember Capital, a subsidiary of Prometheum, has obtained approval from the Financial Industry Regulatory Authority (FINRA) to operate as a special purpose broker-dealer (SPBD) for digital asset securities. This significant approval marks the first time a digital asset custody provider falls under federal regulation, as the Securities and Exchange Commission (SEC) strengthens custody rules.
As an SPBD, Prometheum Ember Capital is now recognized as a qualified custodian under the provisions of the United States Exchange Act of 1934. This allows the company to offer custody services for digital asset securities to both retail and institutional clients. While other digital asset custody providers hold state licenses, Prometheum Ember Capital stands out as the first firm to provide digital asset custody as a qualified custodian regulated by FINRA.
Prometheum co-CEO Aaron Kaplan emphasized the importance of enhanced customer protections, stating that current platforms used by digital asset investors lack the same protections required by federal securities laws under SEA 15c3-3 Rule.
With its new designation, Prometheum Ember Capital aims to offer custody services to a wide range of customers, including individual investors who can now join a waitlist on the company’s website.
The SEC’s increased focus on digital asset custody has led to proposed rules that may require crypto firms to segregate custodied assets in separate entities. These proposals have sparked debates within the crypto community and among lawmakers.
In addition to the approval received by Prometheum Ember Capital, another subsidiary of Prometheum, Prometheum ATS, is registered with FINRA to provide alternative trading services, including trading, clearing, settlement, and custody of digital asset securities. Launched in October, this service aims to integrate regulated digital asset trading into existing legacy trading systems and has partnered with Anchorage Digital Bank to serve institutional and retail investors alike.