Nikolas Sargeant
Crypto.com has announced its acquisition of Watchdog Capital, LLC, marking a significant expansion of its U.S. trading services. The October 31 deal brings an SEC-registered broker-dealer under Crypto.com's umbrella, enabling the platform to offer traditional financial products alongside its cryptocurrency services.
Strategic Expansion Bridges Traditional and Digital Finance
Through this acquisition, Crypto.com will extend its U.S. offerings to include equity trading and options through Watchdog Capital, a FINRA and SIPC member founded by digital assets advocate Bruce Fenton.
CEO Kris Marszalek emphasized the company's commitment to regulated growth: "We're aggressively integrating traditional financial tools while maintaining our focus on responsible development with necessary licenses and registrations. The growing bipartisan support for our industry reinforces our confidence in the U.S. market."
Building Momentum Despite Regulatory Challenges
The expansion comes amid both growth and challenges for Crypto.com. While the company recently sued the SEC over a Wells notice, citing regulatory overreach, it continues to strengthen its market position:
- Launched UpDown Options, the first CFTC-regulated crypto derivatives product
- Introduced PayPal as a payment method
- Partnered with Standard Chartered Bank to enable fiat transactions in 90+ countries
- Expanded global user base to over 100 million
The company's evolution mirrors industry trends, as digital platforms increasingly seek to create comprehensive trading environments. Similar to Robinhood's acquisition of Bitstamp for EU expansion, Crypto.com's latest move reflects the growing convergence of traditional and digital financial services.
Crypto.com will soon provide broker-dealer customers with detailed information about new product offerings, including eligibility requirements and trading timelines.
