Crypto.com has made a bold move by acquiring an SEC-registered broker-dealer, Watchdog Capital, LLC. This acquisition will allow Crypto.com’s new subsidiary to offer equities and equity options to eligible traders in the U.S. This strategic decision will greatly enhance Crypto.com’s product offerings, introducing a range of investment options such as stocks and options tailored for U.S. traders.
Kris Marszalek, CEO of Crypto.com, stated, “We are committed to integrating traditional financial tools with digital capabilities responsibly, ensuring we have the necessary licenses and registrations to lead the industry.” The announcement also mentioned that eligible customers of the broker-dealer will receive information on the new products and services available for trading.
Travis McGhee, Managing Director, Global Head of Capital Markets at Crypto.com, expressed, “With this acquisition, we are advancing towards providing a top-tier global financial trading and services solution.” This acquisition positions Crypto.com to meet the increasing demand for diverse investment opportunities in the cryptocurrency market, attracting both retail and institutional investors.
By leveraging Watchdog Capital’s expertise, Crypto.com aims to solidify its position in the competitive landscape while complying with SEC regulations. This development signifies the evolving nature of digital asset platforms as they expand into compliance and a wider range of financial services.
Crypto.com CEO Kris Marszalek mentioned that the acquisition will enable the platform to offer stocks by the end of the year. The platform recently achieved milestones such as launching CFTC-regulated UpDown Options and partnering with PayPal.
Notably, the acquisition comes after Crypto.com sued the US SEC, challenging the regulator’s oversight of digital currencies.