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 crypto exchange announced this development on December 23, as part of its broader plan to establish a stronger foothold in North America.
Crypto.com Custody Trust Company
Dubbed Crypto.com Custody Trust Company, the chartered trust 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 the new custody service 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."
Regulated Crypto Businesses
Regulated crypto businesses are proliferating in the US, with institutions increasingly looking to secure their digital assets through reputable custodians. In recent months, several prominent players have obtained approval from regulatory bodies to offer custody services to US clients.
For instance, in September, BitGo launched a regulated platform designed to custody and manage native tokens for Web3 protocols. In August, Cointelegraph reported that Fireblocks 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.
US Expansion Plans
Crypto.com is headquartered in Singapore and launched in the US in 2022, initially only for institutional investors. The exchange told Cointelegraph that it is still not live in the US, but the app was never suspended in the jurisdiction.
In October, Crypto.com bought Watchdog Capital, a broker-dealer registered with the SEC, in a bid to expand its US footprint. This move underscores the company’s commitment to establishing itself as a major player in the North American market.
Regulatory Framework
The launch of Crypto.com Custody Trust Company comes amidst growing efforts by the crypto industry to work with regulatory bodies and establish a clear framework for digital asset custody services.
In December, 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 (SEC), 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 development bodes well for the crypto industry’s efforts to establish itself as a major player in the global financial landscape.
Conclusion
The launch of Crypto.com Custody Trust Company marks an important milestone in the company’s expansion plans for North America. As the digital asset custody market continues to grow, institutions are increasingly looking to reputable custodians to secure their assets.
Crypto.com’s commitment to establishing itself as a major player in the US market is evident in its efforts to work with regulatory bodies and establish a clear framework for digital asset custody services. With this move, Crypto.com is poised to play a significant role in shaping the future of the crypto industry in North America.
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