On August 18, Crypto.com confirmed a partnership with the developers of VeChain, which aims to leverage secure custody support for VeChain’s native tokens, VET and VTHO.
This partnership will increase access to the VeChainThor blockchain for institutions, which supports precise and efficient data flows, data sharing, and fast transactions for business-to-business (B2B) and business-to-consumer (B2C) applications.
The partnership demonstrates Crypto.com’s intention to boost its institutional-grade services further while simultaneously focusing on VeChain’s strategy of accelerating enterprise blockchain adoption by moving it towards mainstream areas.
Expanding Institutional Access to VeChainThor
The addition of VET and VTHO to Crypto.com Custody allows eligible institutions and high-net-worth clients to safely hold, manage and transfer VeChain’s native tokens.
Crypto.com Custody provides regulated, institutional-grade insured services, providing multi-user permissions, customizable governance workflows and dedicated layers of security infrastructure.
The partnership is focused on meeting the demand for scalable and compliant blockchain infrastructure.
VeChainThor could be a more viable option for enterprises looking for safe and reliable asset custody-like solutions.
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Leadership Perspectives on the Partnership
Eric Anziani, President and COO of Crypto.com, emphasized the need for security and liquidity in custodianship of digital assets and stated, “for institutions, they need best-in-class custodial service providers to adopt.”
He continued to say that “Crypto.com is proud to support the VeChain Foundation by providing custody of VET and VTHO.”
At the same time, VeChain CEO Sunny Lu expressed his satisfaction with the partnership with Crypto.com as a leading global exchange, and has confidence that this partnership would accelerate both the institutional and mainstream adoption strategy for VeChain.
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VeChain’s Dual-Token System and Latest Developments
VeChainThor implemented a dual-token model that is different than most. VET is used to transfer value, while VTHO is used to pay for the gas fees for valid blockchain transactions or operations.
This is where the protocol maintains a cost for its throughput and keeps the costs as stable as possible based on network conditions without fluctuating too wildly, especially during busy times.
Most recently, VeChain announced a live gas fee market that allows the protocol to adjust its fees like Ethereum’s EIP-1559 based on the cost of network demand and operations for blockchain activities.
It is worth noting that these updates established a deflationary element to the protocol’s tokenomics and have solidified VeChain’s long-term valuation argument.
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Broader Crypto.com Expansion and Global Developments
The collaboration with VeChain highlights a significant series of strategic actions from Crypto.com to grow its global presence and further institutional services. UnoCrypto captured some interesting updates.
On May 13th, Dubai collaborated with Crypto.com to facilitate cryptocurrency payments for government services, aligning with the city’s goal to become a blockchain hub.
Even more intriguing was a report from May 21st, which indicated that Crypto.com obtained a MiFID license to offer crypto derivatives across the European Economic Area under enhanced regulatory oversight.
Just recently, on July 7th, the TON Foundation joined Crypto.com Custody and gained access to secure asset management and staking infrastructure.
These developments highlight Crypto.com’s continued growth as a leading provider of blockchain services while maintaining secure, compliant, and institutional-grade services around the world.
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