Crypto.com Expands US Presence with Institutional Custody Service
Update (Dec. 24, 8:30 am UTC):
This article has been updated to include a clarification from Crypto.com that while its exchange is still not live in the US, the Crypto.com app never was suspended.
In a significant move towards expanding its presence in the United States, Crypto.com has launched an institutional cryptocurrency custody service in the country. The chartered trust, dubbed Crypto.com Custody Trust Company, is eligible to custody assets for US institutions and high-net-worth individuals.
According to Crypto.com, digital assets held by the exchange’s US and Canadian customers will migrate to Crypto.com Custody Trust Company "over the coming weeks." This move reflects the company’s confidence in the North American market, as stated by Kris Marszalek, Crypto.com’s CEO.
A Broader Plan for Expansion
This step is part of a broader plan to expand Crypto.com’s presence in the US and Canada. Marszalek highlighted that this development advances Crypto.com’s roadmap for "building our business and presence in two of the most important and active crypto markets in the world — the US and Canada."
A Meeting with President-elect Trump
This move comes as part of broader discussions within the cryptocurrency sector regarding regulatory frameworks in the US. In December, US President-elect Donald Trump met with Marszalek at Trump’s home in Mar-a-Lago to discuss cryptocurrency policies.
The meeting was notable given Trump’s intentions to make the US a "world’s crypto capital." Following this meeting, Crypto.com dropped its lawsuit against the US Securities and Exchange Commission (SEC), citing its intent to work with the incoming administration on regulatory frameworks for the industry.
A Regulatory Framework
Trump has expressed his desire to see the US take a more favorable stance towards cryptocurrencies. He is tapping pro-industry leaders to head key regulatory agencies when he starts his presidential term in January. This shift in approach could potentially pave the way for greater adoption of cryptocurrency services and products in the US.
Crypto.com’s US Expansion Efforts
Crypto.com is headquartered in Singapore but has been expanding its presence in the US, initially targeting institutional investors. Despite the launch of Crypto.com Custody Trust Company, the exchange itself remains inactive in the US market, with Crypto.com clarifying that the app was never suspended in the jurisdiction.
Acquisition of Watchdog Capital
In October, Crypto.com acquired Watchdog Capital, a broker-dealer registered with the SEC. This move is part of its efforts to expand its footprint in the US and further solidify its position within the regulatory framework.
Regulated Custodians in the US
The launch of Crypto.com Custody Trust Company follows a trend of regulated digital asset custodians emerging in the US market. In September, BitGo launched a regulated platform designed for custodying and managing native tokens for Web3 protocols.
Other Players in the US Market
Several other institutional crypto companies are also licensed to operate within the US. These include Coinbase Custody Trust, Fidelity Digital Asset Services, and Anchorage Digital NY, among others. This proliferation of regulated custodians reflects a growing recognition by the industry of the importance of regulatory compliance.
Implications for the Industry
The launch of Crypto.com Custody Trust Company marks another significant step in the expansion of crypto services within the US market. As the regulatory landscape continues to evolve, we can expect to see more companies following suit, seeking to establish themselves within this increasingly important market.
Conclusion
Crypto.com’s move into the US custody space underscores its commitment to expanding its presence within one of the world’s most significant cryptocurrency markets. As the industry navigates the complex and evolving regulatory landscape, such developments will likely have far-reaching implications for both companies and investors alike.
