Citadel Securities-Backed Crypto.com Brings XYO and XL1 Into Regulated Custody

CN
2 hours ago

Key Takeaways

  • Crypto.com Custody now holds XYO and XL1 in segregated MPC wallets for institutional clients.
  • Citadel Securities invested $400 million in Crypto.com at a $20 billion valuation in July 2026.
  • The OCC gave Crypto.com conditional approval for a national trust bank charter in February 2026.

The deal gives eligible institutions and high-net-worth clients a regulated path to store, manage, and swap both tokens without moving assets onto an exchange first.

According to the announcement shared with Bitcoin.com News, assets will sit in client-segregated MPC wallets held by a bankruptcy-remote entity. Private keys are protected through multi-party computation that runs inside trusted execution environments.

Clients get cold storage, audit trails, and access to Crypto.com’s institutional liquidity while their holdings stay in custody. That setup removes the operational step of transferring funds to an exchange before executing a trade.

“Digital asset organizations require a custodial solution that delivers both unmatched security and seamless liquidity,” said Eric Anziani, President and Chief Operating Officer of Crypto.com. He added that the arrangement is meant to keep the XYO ecosystem “safeguarded” and “ready for global scale.”

XYO Co-Founder Markus Levin explained that the relationship started when XYO first listed on Crypto.com’s exchange and grew from there. “As we build out infrastructure for AI, robotics, and decentralized machine intelligence, having our digital assets XYO and XL1 backed by enterprise-grade security is essential,” Levin remarked.

The custody announcement lands weeks after Citadel Securities invested $400 million in Crypto.com at a $20 billion valuation, the company’s first institutional funding round since 2016. Crypto.com said the capital supports expansion into tokenized securities and derivatives.

In February 2026, the Office of the Comptroller of the Currency (OCC) gave Crypto.com conditional approval to charter Crypto.com National Trust Bank, putting it alongside Bitgo, Circle, Ripple, and Paxos among firms cleared to run federally regulated trust institutions. Its existing custody arm, Crypto.com Custody Trust Company, remains a qualified custodian under the New Hampshire Banking Department.

XYO, founded in 2016, runs one of the largest consumer DePIN networks in operation, with more than ten million nodes producing verifiable, real-world data used in AI, robotics, logistics and physical infrastructure. XL1 handles transactions, gas fees, and blockchain infrastructure for that specific network.

For institutions weighing exposure to DePIN and real-world-data tokens, the custody agreement removes a common barrier: proving that a smaller-cap asset can be held under the same regulatory and security standards as larger tokens. Pairing that with Crypto.com’s expanding trust bank status gives XYO and XL1 holders a custodian with a growing regulatory footprint behind it.

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