Crypto.com Launches Institutional Custody Service in the United States

December 24, 2022

Update: 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.

Institutional Custody Service Launched by Crypto.com

Crypto.com has launched an institutional cryptocurrency custody service in the United States as part of a broader plan to expand its presence in the country. The crypto exchange announced the launch on December 23, stating that the new service is dubbed Crypto.com Custody Trust Company.

Eligibility and Asset Migration

The chartered trust is eligible to custody assets for US institutions and high-net-worth individuals. As part of this expansion, digital assets held by Crypto.com’s US and Canadian customers will migrate to Crypto.com Custody Trust Company over the coming weeks.

"This step reflects our confidence in the North America[n] market," said Kris Marszalek, Crypto.com’s CEO, in a statement. "It also 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."

Regulatory Landscape

Crypto.com is headquartered in Singapore and launched in the US in 2022, initially only for institutional investors. However, the exchange is still not live in the US. A clarification from Crypto.com states that while its exchange is still not live in the US, the Crypto.com app never was suspended.

In October, Crypto.com bought Watchdog Capital, a broker-dealer registered with the SEC, in a bid to expand its US footprint. This move comes as part of the company’s broader strategy to establish itself as a major player in the US market.

Regulated Custodians Proliferating in the US

The launch of Crypto.com’s institutional custody service is not an isolated event. Regulated digital asset custodians are proliferating in the US, with several companies already established and operational.

In September, BitGo, a US crypto custodian, launched a regulated platform designed to custody and manage native tokens for Web3 protocols. In August, Cointelegraph reported that Fireblocks — best known for its self-custody treasury management products — obtained approval from New York’s financial regulator to custody assets for US clients.

Other institutional crypto companies, including Coinbase Custody Trust, Fidelity Digital Asset Services, and Anchorage Digital NY, are also similarly licensed. This proliferation of regulated custodians reflects the growing demand for secure and compliant cryptocurrency storage solutions in the US market.

US Expansion Plans

Crypto.com’s launch of an institutional custody service marks a significant step towards expanding its presence in the US. The company has stated that it aims to build its business and establish itself as a major player in two of the most important crypto markets in the world — the US and Canada.

This move is also reflective of the broader trend of cryptocurrency companies looking to expand their operations into new jurisdictions, driven by growing demand for digital assets and increasing regulatory clarity. As more companies look to establish themselves in the US market, it will be interesting to see how Crypto.com’s institutional custody service competes with existing players.

Related Developments

In related news, US President-elect Donald Trump met with Marszalek at Trump’s home in Mar-a-Lago to discuss crypto policies. The same day, Crypto.com dropped its lawsuit against the US Securities and Exchange Commission, citing its intent to work with the incoming administration on a regulatory framework for the industry.

Trump has said he wants the US to be "the world’s crypto capital" and is tapping pro-industry leaders to head key regulatory agencies when he starts his presidential term in January. This shift towards greater regulatory clarity and support for the cryptocurrency industry is likely to have significant implications for companies looking to establish themselves in the US market.

Conclusion

The launch of Crypto.com’s institutional custody service marks a significant step forward for the company as it looks to expand its presence in the US. The proliferation of regulated custodians in the US reflects growing demand for secure and compliant cryptocurrency storage solutions, driven by increasing regulatory clarity and growing interest in digital assets.

As more companies look to establish themselves in the US market, it will be interesting to see how Crypto.com’s institutional custody service competes with existing players. With its broad range of services and commitment to regulatory compliance, Crypto.com is well-positioned to become a major player in the US cryptocurrency market.

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