The company, which has made strides in securing licenses across various jurisdictions globally, is now positioned to offer institutional digital asset custody services to U.S. and Canadian institutions and high-net-worth individuals.

Expanding Presence in North America

In a statement on December 23, Kris Marszalek, CEO and co-founder of Crypto.com, described the launch as part of a broader strategy to bolster the exchange’s footprint in two of the world’s largest and most active crypto markets. “Launching a U.S. trust company is our latest significant step in our product roadmap to building our business and presence in the U.S. and Canada,” Marszalek said, emphasizing the company’s confidence in the North American market.

Source: X

The migration of digital assets for U.S. and Canadian customers to the new custody platform is set to occur over the next few weeks, with assurances of uninterrupted access to accounts and funds during the transition process.

A Shift in Strategy

Crypto.com’s U.S. push is not without its complications, particularly given its turbulent history with regulators. Originally based in Singapore, the company launched in the U.S. in 2022. However, it faced significant setbacks, including the suspension of its exchange services in 2023. It appears that Crypto.com is now regrouping with a more regulated approach, pivoting toward institutional and custody services as a safer bet for expanding its presence in the region.

In October, the company took another bold step by acquiring Watchdog Capital, a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC). This move further solidified its commitment to the U.S. market with a focus on regulatory compliance, especially after Crypto.com dropped its lawsuit against the SEC in December 2024.

This ruling came just after a very public meeting between Marszalek and U.S. President-elect Donald Trump to discuss the prospects of the United States leading cryptocurrency policy globally.

What’s Next for Crypto.com

Despite all the growth and regulatory compliance messages, the company still remains tainted by its past shortcomings. Crypto.com has been plagued by controversy throughout the history of its operation. Security breaches, among other battles with regulators, have tested its rough love affair with users and regulators alike. Indeed, before the withdrawn lawsuit from the SEC, Crypto.com had earlier come under the radar for its aggressive marketing tactics and mixed messages in compliance with United States financial laws.

Crypto.com founder Kris Marszalek. Source: Bloomberg

The company has, however, continued to assure the world that it values privacy and security and has become one of the most trusted platforms, serving more than 100 million users around the world. This may be a new beginning with the introduction of Crypto.com Custody Trust Company, but its journey will continue to be followed, particularly in the United States, as the country faces its current regulatory hurdles.

Crypto.com’s Growing Challenges

In the broader context of institutional custodians in the U.S., Crypto.com is entering a competitive landscape. Industry players like Coinbase Custody Trust, BitGo, and Fidelity Digital Assets have already established themselves as key custodians of institutional crypto assets.

Despite its efforts to differentiate itself with its “regulated” status, Crypto.com will have to prove that it can offer the level of trust and security that institutional clients expect. Moreover, the company’s shaky record with past security issues and its changing stance on U.S. operations will likely continue to fuel skepticism about its long-term viability in the U.S. market.

While Marszalek and his team exude optimism, their ability to maintain trust and successfully navigate the twilight world of unclear regulations, coupled with providing consistent and secure services, will be important as the company goes forward. Meanwhile, Crypto.com’s further expansion into sports trading and consumer-facing products shows it is trying to diversify its offerings and reach new customers.

But like so many ambitious crypto companies, Crypto.com’s success will ultimately hinge on its ability to grow sustainably in the U.S. market by moving past previous controversies through a renewed focus on regulation and expansion.

Bottom Line

Crypto.com’s U.S. institutional custody launch is a bold move to further establish its presence in the North American market. While the company’s expansion efforts appear promising, it must navigate ongoing regulatory challenges and repair its reputation from previous controversies. As the market grows more competitive, Crypto.com’s success will depend on its ability to stay compliant, secure, and transparent in a rapidly evolving industry.