Update (Dec. 24, 8:30 am UTC): Clarification on Crypto.com’s US Operations
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 Cryptocurrency Custody Service Now Live in the US
Crypto.com has made significant strides in expanding its presence in the United States by launching an institutional cryptocurrency custody service. This move is part of a broader plan to increase its footprint in the country, as announced on December 23.
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 Crypto.com’s US and Canadian customers will migrate to Crypto.com Custody Trust Company over the coming weeks.
A Step Towards Confidence in the North American Market
This development reflects Crypto.com’s confidence in the North American market. In a statement, Kris Marszalek, Crypto.com’s CEO, highlighted that this step advances their roadmap for building business and presence in two of the most important and active crypto markets worldwide – the US and Canada.
Expansion Plans and Collaboration with Regulatory Agencies
Regulated crypto businesses are proliferating in the US, with companies like Coinbase Custody Trust, Fidelity Digital Asset Services, and Anchorage Digital NY being licensed to custody assets for US clients. Crypto.com’s expansion plans come on the heels of a meeting between President-elect Donald Trump and Marszalek at Mar-a-Lago in December.
During this meeting, Trump expressed his intention for the US to become the world’s crypto capital. He also appointed pro-industry leaders to head key regulatory agencies when he starts his presidential term in January.
Collaboration with Regulatory Agencies
Crypto.com has 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. This decision is seen as a significant move towards collaboration between regulatory agencies and crypto companies.
Key Takeaways
- Crypto.com has launched an institutional cryptocurrency custody service in the United States.
- The chartered trust, dubbed Crypto.com Custody Trust Company, is eligible to custody assets for US institutions and high-net-worth individuals.
- Digital assets held by Crypto.com’s US and Canadian customers will migrate to Crypto.com Custody Trust Company over the coming weeks.
- This development reflects Crypto.com’s confidence in the North American market and advances their roadmap for building business and presence in key crypto markets worldwide.
- Regulated crypto businesses are proliferating in the US, with companies like Coinbase Custody Trust, Fidelity Digital Asset Services, and Anchorage Digital NY being licensed to custody assets for US clients.
Related Developments
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.
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.
Expansion Plans
Crypto.com is headquartered in Singapore and launched in the US in 2022, initially only for institutional investors. The exchange 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.
Conclusion
Crypto.com’s launch of an institutional cryptocurrency custody service in the US marks a significant step towards expanding its presence in the country. With the increasing number of regulated crypto businesses in the US, Crypto.com is well-positioned to capitalize on this trend and build a strong reputation as a leading player in the industry.
In conclusion, the expansion plans of Crypto.com are reflective of its commitment to building a robust business and presence in key crypto markets worldwide. As the regulatory landscape continues to evolve, it will be interesting to see how Crypto.com navigates these changes and maintains its position as a leader in the industry.
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