Citadel Securities-Backed Crypto.com Brings XYO and XL1 Into Regulated Custody
Crypto.com Custody has added XYO and XL1 to its regulated custody services, providing institutional-grade storage and liquidity for both tokens, the company announced Monday. The move marks the first listing of XL1 on a major exchange since its token sale.
Assets are held in client-segregated multi-party computation (MPC) wallets within a bankruptcy-remote entity. Private keys are secured using MPC technology inside trusted execution environments. Clients benefit from cold storage, audit trails, and access to Crypto.com’s institutional liquidity without needing to transfer funds to an exchange before trading.
“The arrangement ensures XYO and XL1 are safeguarded and ready for global scale,” said Eric Anziani, President and COO of Crypto.com. XYO Co-Founder Markus Levin noted that the partnership began when XYO first listed on Crypto.com’s exchange and has since expanded. “Having our digital assets backed by enterprise-grade security is essential as we build infrastructure for AI, robotics, and decentralized machine intelligence,” Levin said.
The custody announcement follows Citadel Securities’ $400 million investment in Crypto.com at a $20 billion valuation in July 2026, the company’s first institutional funding round since 2016. In February 2026, the OCC granted conditional approval for Crypto.com National Trust Bank, placing Crypto.com among federally regulated trust institutions like Bitgo, Circle, Ripple, and Paxos. Its existing custody arm, Crypto.com Custody Trust Company, remains a qualified custodian under New Hampshire regulation.
XYO, founded in 2016, operates a large consumer DePIN network with over ten million nodes generating verifiable real-world data for AI, robotics, logistics, and physical infrastructure. XL1 handles transactions and gas fees for that network.
For institutions, the agreement removes a barrier to holding smaller-cap DePIN tokens under the same regulatory and security standards as larger assets, backed by Crypto.com’s expanding trust bank status.