Crypto.com Expands U.S. Offerings with Acquisition of Watchdog Capital

Crypto.com Expands U.S. Offerings with Acquisition of Watchdog Capital

Crypto.com has announced a significant expansion of its U.S. trading services through the acquisition of Watchdog Capital LLC an SEC-registered broker-dealer that is a member of FINRA and SIPC. This strategic move aims to enhance the platform's capabilities by enabling it to offer equity trading options and other traditional financial services to eligible U.S. traders. This integration of digital and traditional financial tools represents a substantial evolution for Crypto.com beyond its primary cryptocurrency offerings.

With this acquisition Crypto.com positions its U.S. subsidiary to provide securities products under a regulated framework which is a notable development for the company as it seeks to broaden its service portfolio. Watchdog Capital was founded by Bruce Fenton a prominent advocate for digital assets. Kris Marszalek CEO of Crypto.com emphasized the company’s commitment to integrating regulated traditional finance options with its digital-first ecosystem. Marszalek stated that Crypto.com is actively working towards melding traditional financial tools with its digital offerings while ensuring compliance with necessary licenses and registrations to maintain its leadership in the industry. He expressed optimism regarding the U.S. market noting the increasing bipartisan support for the cryptocurrency sector.

Broker-dealer customers can expect further details on the products that will be available to them including information on eligibility and trading timelines. This expansion aligns Crypto.com with broader industry trends as companies such as Robinhood have similarly acquired crypto-focused platforms like Bitstamp to enhance their market presence particularly in the European Union. The integration of traditional financial assets into Crypto.com’s digital offerings reflects an industry-wide movement towards creating multifaceted consumer trading environments.

This acquisition occurs in the context of ongoing regulatory scrutiny as Crypto.com is currently engaged in a legal battle against the SEC. On October 8 Marszalek announced the lawsuit against the SEC asserting that the agency had exceeded its jurisdiction beyond statutory limits. Founded in Singapore Crypto.com initially launched its U.S. services in March 2022 targeting institutional investors. However due to low demand the company paused some services in June 2023. Despite these challenges the platform has continued to serve many users in the U.S. and reports having over 100 million users worldwide.

Additionally Crypto.com has expanded its fiat services through a partnership with Standard Chartered Bank enabling users in over 90 countries to deposit and withdraw fiat currencies including U.S. dollars euros and UAE dirhams via the Crypto.com app. The acquisition of Watchdog Capital adds to Crypto.com’s recent milestones which include the launch of UpDown Options the first CFTC-regulated crypto derivatives product and the introduction of PayPal as a payment method.