CySEC-regulated Crypto.com launches tokenised stocks across the EEA

Crypto.com has launched its Tokenised Stocks product across the European Economic Area (EEA) through Cyprus-regulated Foris Capital CY Limited, offering eligible users price exposure to 1,500 US stocks and exchange-traded funds from US$1. The company described the launch as its largest-ever offering of tokenised stocks at launch, combining round-the-clock trading with fractional access and fast settlement through the Crypto.com App. Foris Capital CY Limited, formerly known as A.N. Allnew Investments Limited, is regulated by the Cyprus Securities and Exchange Commission (CySEC) and holds Cypriot Investment Firm licence number 344/17. The licence was granted under the Investment Services and Activities and Regulated Markets Law 87(I)/2017, as amended, which implements the EU’s Markets in Financial Instruments Directive II, known as MiFID II, in Cyprus. It allows Foris Capital CY Limited to conduct the investment and ancillary services and activities specified in its licence. The company has also passported those services and activities to other EEA jurisdictions on a freedom-of-services basis. Available through the Crypto.com App, the new product gives eligible users in Cyprus, the wider EEA and other approved jurisdictions globally round-the-clock access to tokenised instruments tracking US equities and ETFs. The product offers trading outside traditional market hours, with 24/7 access subject to platform availability and market conditions. These include instruments referencing companies such as Nvidia, Tesla and Apple, represented by the stock tickers NVDA, TSLA and AAPL. Users can also gain exposure to commodities through ETFs such as GLD and SLV. In addition to round-the-clock trading, Tokenised Stocks provides fractional access from US$1 and fast settlement. Kris Marszalek, co-founder and chief executive of Crypto.com Crypto.com said its deep liquidity and efficient trade-execution capabilities combine the speed and accessibility of the Crypto.com App with exposure to traditional equities investing in a tokenised format. However, Tokenised Stocks are derivative financial instruments designed to track the price performance of corresponding underlying assets. Investors do not acquire legal or beneficial ownership of those assets or any associated shareholder or voting rights. Users may nevertheless be eligible for dividend-equivalent adjustments, subject to the applicable product description document and terms and conditions. The emphasising assets supporting the Tokenised Stocks are held in custody with Alpaca, a US-regulated self-clearing broker-dealer. According to Crypto.com, Alpaca provides infrastructure supporting more than 90 per cent of the tokenised US stocks and ETF market. Kris Marszalek, co-founder and chief executive of Crypto.com, said, “We’re advancing our multi-asset ecosystem by giving our users a flexible way to invest with instant access to US equity and ETF exposure.” “Money never sleeps. Market access shouldn’t either,” he added. Marszalek also said, “By modernising one of the world’s oldest asset classes with the speed of blockchain, Tokenised Stocks offers a simple, 24/7 solution to a historically complex trading experience.” For a limited introductory period, Crypto.com is offering eligible users zero-commission trading in Tokenised Stocks, subject to the applicable terms and conditions. Other foreign-exchange charges or spreads may apply. The company cautioned that investments in Tokenised Stocks involve market, liquidity and counterparty risks. Their value may rise or fall, while investors may lose part or all of their invested capital. Past performance is not a reliable indicator of future results, while users remain solely responsible for investment decisions made through their accounts. Any dividend-equivalent adjustments, where applicable, are subject to the relevant product terms and are not guaranteed. Tokenised Stocks issued by Foris Capital MU Limited also track the price of the underlying securities. Trading may involve loss of capital, including as a result of market volatility or counterparty risk. Crypto.com advised users to consult the relevant product description document and ensure that they fully understand the risks before trading. In the EEA, users should review the applicable terms and conditions and any required key information document before investing. Further details about the investment and ancillary services that Foris Capital CY Limited is authorised to provide are available through the CySEC register, while additional product information is available through Crypto.com.