Prometheum, one of the few crypto companies to have approval from United States financial regulators as a special purpose broker-dealer (SPBD) for digital asset securities, has announced it will be offering institutional custody services for Ether (ETH).

In a Feb. 7 post on X, Prometheum suggested that Ether would be treated as a security for custodial services on its platform. The firm received approval from the U.S. Financial Industry Regulatory Authority in May 2023, seemingly meeting many of the guidelines set by the U.S. Securities and Exchange Commission (SEC) on dealing with crypto asset securities.

Prometheum Capital is thrilled to announce ETH as the first #digitalassetsecurity for institutional custody on our platform. Institutions can sign up now at https://t.co/c6VNTsmfoL in preparation for our upcoming custodial services. #digitalassets #digitalsecurities

— Prometheum (@PrometheumInc) February 7, 2024

“Prometheum ATS supports the trading of certain digital asset securities that currently only trade on crypto exchanges,” said the firm’s website. “Diversify your portfolio mix by investing in the ‘crypto asset’ class with guardrails and investor protections afforded by securities laws.”

It’s unclear how the SEC may respond to Prometheum offering Ether as a security to investors. SEC chair Gary Gensler sidestepped questions at an April 2023 hearing on whether ETH qualified as a security.

The SEC has pushed deciding on whether to approve or deny listing and trading spot ETH exchange-traded funds from several asset managers following its Jan. 10 approval of spot Bitcoin (BTC) ETFs. Some experts expect the commission to reach a decision by May 23 — the final deadline for a spot ETH offering from VanEck.