Crypto Biz: Kraken denies USDT delisting, crypto custody on the rise, and more

The NFT Unicorn f2bdb35e-848e-46d0-a4d0-3ca2d89b45fd Crypto Biz: Kraken denies USDT delisting, crypto custody on the rise, and more Crypto News

Custody of digital assets has become an increasingly popular business, particularly since the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States.

The latest companies seeking to safeguard assets for institutional investors include Taurus and Fireblocks. While Taurus announced opening an office in Canada in response to a demand for custody and tokenization, Fireblocks is awaiting regulatory approval for a limited-purpose trust company regulated by the New York Department of Financial Services.

Ripple foresees the institutional crypto custody market could reach nearly $10 trillion by 2030.

In other news, Coinbase appointed Kendrick Meek to its digital asset regulatory council. Meek previously served as a representative for Florida’s 17th congressional district. According to the exchange, Meek’s arrival is part of efforts to “update the system” governing digital assets in the United States.

This week’s Crypto Biz also covers Kraken’s denial that it plans to delist stablecoins in Europe, the departure of Grayscale’s CEO, Prometheum’s Ether (ETH) custody service that treats ETH as a security, and more.

Crypto exchange Kraken has “no plans” to delist USDT in Europe for now

Cryptocurrency exchange Kraken has “no plans” to delist Tether (USDT) in Europe at the moment, despite a recent report claiming the firm was “actively reviewing” the decision to remain legally compliant. “[Kraken] continues to list USDT in Europe, and we have no plans to delist at this time,” stated Mark Greenberg, Kraken’s global head of asset growth and management. Greenberg iterated that the firm would continue to follow all legal requirements — even those it disagreed with. “But the rules are not finalized yet, and we continue to do everything we can to continue to offer all relevant stablecoins to our European customers.” Bloomberg reported on May 17 that Kraken was “actively reviewing” plans to comply with the Markets in Crypto-Assets Regulation framework.

Source: Mark Greenberg

Prometheum launches Ether custody service that treats ETH as a security: Report

Digital asset trading and custody firm Prometheum has launched an Ether custody service that treats digital assets as securities. According to a May 20 report from Fortune, the service was initially rolled out to a few select companies on May 17, with a full-scale launch expected in June. The firm gained attention last June when its co-founder and co-CEO, Aaron Kaplan, testified before a U.S. House of Representatives committee, supporting crypto regulation under current securities laws. In February, Prometheum announced it would treat Ether as a security upon launching its custodial services, drawing criticism from the crypto community.

Grayscale CEO Michael Sonnenshein steps down

Michael Sonnenshein has stepped down from his role as CEO of Grayscale Investments. Barry Silbert, the founder and CEO of Digital Currency Group, announced the decision on May 20. Sonnenshein will be replaced by former Goldman Sachs executive Peter Mintzberg on Aug. 15. Until then, Grayscale’s chief financial officer, Edward McGee, will lead the firm in the interim as principal executive officer. Sonnenshein served as CEO for 10 years and played a crucial role in introducing crypto funds to institutional investors, including as a sponsor of a spot Bitcoin (BTC) ETF.

Binance.US wins appeal to reinstate Florida money services license

Binance.US has won its appeal against the suspension of its money-services business license in Florida. The Florida First District Court of Appeal ruled that the state Office of Financial Regulation lacked legal justification for the emergency suspension order and did not discuss less severe alternatives to the decision. The suspension was initially issued after Binance CEO Changpeng Zhao pleaded guilty to violating U.S. Anti-Money Laundering law on Nov. 21, 2023. The suspension threatened significant financial losses and tax liabilities for more than 170,000 state account holders, as it would require liquidating their digital asset holdings amid price fluctuations. 

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