Crypto.com Acquires Broker-Dealer Watchdog Capital to Explore Stock and Options Markets

Singapore-headquartered crypto exchange Crypto.com announced today its acquisition of Watchdog Capital, a broker-deal registered under the United States Securities and Exchange (SEC). This move, aimed at cementing the exchange’s presence in the U.S., will open equities and equity options to eligible traders in the country.

Watchdog Capital is also a member of America’s Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).

Crypto.com Acquires Watchdog Capital

The announcement emphasized that the latest acquisition deal will allow Crypto.com to blur the boundaries between traditional finance and the digital finance market. This enables the crypto-native exchange to offer stocks and options to American traders through its newly acquired subsidiary.

Crypto.com CEO Kris Marszalek reiterated these points in his comment, adding that the exchange is “extremely confident in the future of the U.S. market.”

Marszalek further revealed through a tweet that Crypto.com’s family of companies will offer crypto derivatives by the end of this year.

This acquisition is a massive step forward in bridging traditional and digital finance in the U.S. market.

By the end of this year, https://t.co/pFc4Pz9nFR will offer a full range of services through its family of companies, including crypto derivatives and now stocks:…

— Kris | Crypto.com (@kris) October 31, 2024

Crypto.com’s business expansion has shown in its market metrics. From a monthly spot trading volume of $34 billion in July, the exchange’s record soared to $134 billion in September.

Rival Exchanges Lay Off Employees

While Crypto.com expands its business activities, rival crypto exchanges are downsizing their workforce. Three crypto-focused platforms reduced their headcount this week.

Hours ago, Kraken laid off 15% of its employees, affecting 400 workers. Earlier this week, Consensys and dYdX reduced their workforce by 20% and 35%, respectively.

These layoffs come as a surprise to many in the industry because the crypto market is currently in a bull season when investors record profits from their crypto holdings.