Crypto.com is expanding its institutional custody offering to include XYO and XL1, the two tokens powering the XYO ecosystem. The move brings decentralized physical infrastructure network (DePIN) and Layer-1 blockchain assets under the exchange's custody umbrella. It's the latest sign that Crypto.com is betting big on institutional services — a bet backed by a $400 million investment from Citadel Securities and a conditional OCC trust bank approval.
XYO and XL1: What they are
XYO runs a DePIN network with over 10 million nodes that secure and incentivize data validation. XL1 is the ecosystem's Layer-1 blockchain token, used for transactions and network operations. By adding both, Crypto.com gives institutional clients a way to hold and trade assets tied to real-world data infrastructure — a niche that's drawn growing interest from funds and corporates.
Crypto.com's institutional push
The custody expansion is just one piece of a broader institutional strategy. This year alone, Crypto.com received conditional approval from the Office of the Comptroller of the Currency to establish Crypto.com National Trust Bank. Citadel Securities poured $400 million into the exchange at a $20 billion valuation, explicitly to grow its institutional business. Sony Electronics Singapore also partnered with Crypto.com to let customers pay with USDC on its online store. And the exchange has plans to launch crypto-focused ETFs with Trump Media — though those are still in the works.
Custody details
Client assets will be held in segregated MPC wallets within a bankruptcy-remote entity. Eric Anziani, President and COO of Crypto.com, said the custody solution provides both security and liquidity — a combination that matters more as institutions move beyond Bitcoin and Ether into smaller ecosystems.
Broader trend
Institutional infrastructure providers are increasingly supporting a wider range of blockchain ecosystems, including tokenization, DePIN, and AI-related projects. Adding XYO and XL1 fits that pattern. The question now is how quickly other exchanges and custodians follow — and whether the ETF plans with Trump Media materialize before year-end.
