Crypto.com Custody will begin providing institutional-grade custody and liquidity services for the XYO ecosystem, the exchange announced Monday. This move will give eligible institutions and high-net-worth clients a regulated way to store, manage and swap the XYO and XL 1 tokens.
Why this move matters
The announcement coincides with XL 1’s debut on a major exchange for the first time since its token sale, with it now trading on Crypto.com.
Users will now have access to the exchange’s institutional liquidity while holding the tokens on the regulated platform. This eliminates the need for users to first move the assets to another exchange to carry out transactions. The offering includes client-segregated multi-platform computation (MPC) wallets, cold storage, transparent audit trails and streamlined compliance processes.
The custody deal is the latest step in a broader institutional push by the company. In February this year, the platform received conditional approval from the Office of the Comptroller of the Currency to charter Crypto.com National Trust Bank, joining BitGo, Circle, Ripple and Paxos among crypto firms cleared to operate federally regulated trust institutions.
Crypto.com Custody Trust Company, the firm’s existing qualified custodian, is regulated by the New Hampshire Banking Department. This month, Citadel Securities invested $400 million in Crypto.com at a $20 billion valuation – the exchange’s first institutional funding round since 2016 – to help finance an expansion into tokenized securities and derivatives.
How this works
According to Crypto.com, client funds will be held in segregated MPC wallets owned by a bankruptcy-remote entity, with private keys safeguarded through multi-party computation running inside trusted execution environments.
“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. Anziani added that the company was glad to help ensure the XYO ecosystem is safeguarded with institutional-grade custody as it scales globally.
XYO, founded in 2016, operates one of the largest consumer networks of its kind known as decentralized physical infrastructure network, or DePIN, with more than 10 million nodes producing verifiable, real-world data for use in artificial intelligence, robotics, logistics and infrastructure projects. The XYO token secures and incentivizes data validation across the network, while XL 1 handles transaction processing, gas fees and other blockchain functions.
“We’ve had a great relationship with Crypto.com since listing XYO on their exchange, and expanding into custody for XL1 and XYO together is a natural next step,” said Markus Levin, co-founder of XYO. Levin said the added security gives builders and enterprises more confidence in the infrastructure XYO is building for artificial intelligence, robotics and decentralized machine intelligence.
This partnership between Crypto.com and XYO Network will enable secure, regulated storage and liquidity for XYO and XL 1 tokens, targeting enterprise adoption for DePIN and AI projects.
