Update (Dec. 24, 8:30 am UTC): Clarification from Crypto.com
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, dubbed Crypto.com Custody Trust Company. This chartered trust is eligible to custody assets for US institutions and high-net-worth individuals, as per a statement from the crypto exchange on December 23.
Background and Expansion Plans
Crypto.com’s expansion plans in the US are part of its broader strategy to increase its presence in two of the most active crypto markets worldwide. The company has been actively working towards this goal, with several key developments contributing to its progress.
In December, US President-elect Donald Trump met with Kris Marszalek, Crypto.com’s CEO, at Trump’s home in Mar-a-Lago to discuss crypto policies. This meeting was a significant step forward for the industry, as it signaled the incoming administration’s willingness to work closely with companies like Crypto.com on regulatory frameworks.
Related to this development, Crypto.com dropped its lawsuit against the US Securities and Exchange Commission (SEC) shortly after the meeting. The company cited its intent to collaborate with the new administration on a regulatory framework that would support the growth of the crypto industry in the US.
US Expansion Plans
In 2022, Crypto.com launched its operations in the US, initially targeting institutional investors only. Despite being headquartered in Singapore and having an exchange still not live in the US, the company has been actively working to expand its presence in the jurisdiction.
One key aspect of this expansion was the acquisition of Watchdog Capital, a broker-dealer registered with the SEC, in October. This move aimed to strengthen Crypto.com’s foothold in the US market and pave the way for further growth.
Regulated Custodians
The launch of Crypto.com’s institutional custody service is part of a broader trend in the US crypto space. Regulated digital asset custodians are proliferating in the country, providing investors with increased confidence in the security and legitimacy of their assets.
In September, BitGo launched a regulated platform designed to custody and manage native tokens for Web3 protocols. This move was a significant step forward for the company, which has been working towards expanding its services in the US.
Other institutional crypto companies, such as Coinbase Custody Trust, Fidelity Digital Asset Services, and Anchorage Digital NY, are also licensed to operate in the US, offering similar custody services to their clients.
Implications of Crypto.com’s Launch
The launch of Crypto.com’s institutional custody service is a significant development in the US crypto space. As one of the largest cryptocurrency exchanges globally, Crypto.com’s entry into the US market has been closely watched by industry stakeholders and investors alike.
With its chartered trust now eligible to custody assets for US institutions and high-net-worth individuals, Crypto.com is well-positioned to capitalize on the growing demand for institutional-grade crypto services in the country.
Looking Ahead
As the regulatory landscape in the US continues to evolve, companies like Crypto.com are poised to play a crucial role in shaping the future of the industry. With its expanded presence in the US and its commitment to working closely with regulators, Crypto.com is well-positioned to contribute to the growth and development of the crypto space.
Related Developments
In related news, President-elect Donald Trump has expressed his desire for the US to become "the world’s crypto capital." To achieve this goal, he is tapping pro-industry leaders to head key regulatory agencies when he starts his presidential term in January.
This shift towards a more supportive regulatory environment is likely to have significant implications for companies like Crypto.com, which are actively working to expand their presence in the US market.
Conclusion
The launch of Crypto.com’s institutional custody service is a significant development in the US crypto space. As one of the largest cryptocurrency exchanges globally, Crypto.com is well-positioned to capitalize on the growing demand for institutional-grade crypto services in the country.
With its expanded presence in the US and its commitment to working closely with regulators, Crypto.com is poised to contribute significantly to the growth and development of the crypto industry in the jurisdiction.
