By Bitwave 
Update (Dec. 24, 8:30 am UTC): Clarification on Crypto.com’s US Presence
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.
Crypto.com Expands Institutional Footprint with Custody Service Launch
In a significant move to strengthen its presence in the US market, Crypto.com has launched an institutional cryptocurrency custody service. This development marks a crucial step towards fulfilling the company’s broader plan to expand its operations in North America.
Dubbed Crypto.com Custody Trust Company, the chartered trust is eligible to custody assets for US institutions and high-net-worth individuals. According to a statement from 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."
A Strategic Expansion
This strategic move reflects Crypto.com’s confidence in the North American market. Kris Marszalek, CEO of Crypto.com, emphasized that the launch of Crypto.com Custody Trust Company is a key component of the company’s roadmap for building its business and presence in two of the most significant crypto markets worldwide – the US and Canada.
Background on US Expansion Plans
Crypto.com has been actively pursuing expansion plans in the US. In December 2022, US President-elect Donald Trump met with Marszalek at Trump’s home in Mar-a-Lago to discuss crypto policies. On the same day, Crypto.com dropped its lawsuit against the US Securities and Exchange Commission (SEC), citing its intention to work with the incoming administration on a regulatory framework for the industry.
Trump has expressed his desire for the US to become "the world’s crypto capital." He is also selecting pro-industry leaders to head key regulatory agencies when he starts his presidential term in January. Crypto.com, headquartered in Singapore and launched in the US in 2022 exclusively for institutional investors, clarified that its exchange is still not live in the US but that the app was never suspended in the jurisdiction.
Acquisitions and Partnerships
In October, Crypto.com acquired Watchdog Capital, a broker-dealer registered with the SEC. This acquisition is part of Crypto.com’s strategy to expand its footprint in the US market.
Growing Regulation and Competition in the Custody Space
Regulated digital asset custodians are proliferating in the US. In September, BitGo launched a regulated platform designed to custody and manage native tokens for Web3 protocols. Additionally, 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. This increased competition underscores the growing importance of regulated custodians in the industry.
The Rise of Institutional Crypto
The expansion of Crypto.com into the US market with a custody service is part of a broader trend towards institutional adoption of cryptocurrencies. As more institutions look to invest and manage digital assets securely, the need for regulated custodians has grown significantly.
In conclusion, Crypto.com’s launch of its custody service marks an important step in the company’s expansion plans in North America. With a growing number of regulated custodians entering the market, it is clear that institutional crypto adoption is on the rise.
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