This deal provides qualifying institutions and high-net-worth clients with a regulated mechanism for storing, managing, and exchanging both tokens without the need to pre-transfer assets to an exchange.
Custody Structure Built on Segregation Principle
According to a statement shared with Bitcoin.com News, assets will be held in client-segregated MPC wallets managed by a bankruptcy-remote legal entity. Private keys are secured using multi-party computations performed in trusted execution environments.
Clients receive cold storage, audit trails, and access to Crypto.com's institutional liquidity while their assets are in custody. This arrangement eliminates the operational step of transferring funds to an exchange prior to executing a trade.
Company Leadership Positions Deal as a Strategic Move
"Organizations dealing with digital assets require a custody solution that offers both unparalleled security and seamless liquidity," said Eric Anziani, President and Chief Operating Officer of Crypto.com. He added that this agreement aims to provide "protection" for the $XYO ecosystem and "its readiness for global scaling."
$XYO Co-founder Markus Levin clarified that the collaboration began when $XYO was first listed on the Crypto.com exchange and has evolved since. "As we build infrastructure for AI, robotics, and decentralized machine intelligence, it is paramount that our $XYO and XL1 digital assets are safeguarded with enterprise-grade security," Levin noted.
Citadel Securities' $400 Million Bet Adds Context
The custody announcement came 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 stated that the raised capital will be directed towards expanding its tokenized securities and derivatives activities.
In February 2026, the Office of the Comptroller of the Currency (OCC) granted Crypto.com conditional approval to establish the Crypto.com National Trust Bank, placing the company alongside Bitgo, Circle, Ripple, and Paxos among firms approved to operate federally-regulated trust institutions. The company's existing asset custody unit, Crypto.com Custody Trust Company, remains a qualified custodian under the supervision of the New Hampshire Banking Department.
What $XYO and XL1 Actually Do
Founded in 2016, the $XYO company operates one of the largest operational consumer DePIN networks, with over ten million nodes generating verifiable real-world data used in AI, robotics, logistics, and physical infrastructure. XL1 handles transactions, gas fees, and provides blockchain infrastructure for this specific network.
What This Means for Institutional Investors
For institutional investors considering investments in DePIN tokens and real-world data tokens, the custody agreement removes a common barrier: the need to prove that smaller-cap assets can be stored according to the same regulatory requirements and security standards as larger tokens. Combined with Crypto.com's expanding status as a trust bank, this provides $XYO and XL1 holders with a custodian boasting growing regulatory presence.
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