Key Takeaways
- Citadel Securities plans to enter the crypto market-making business targeting major exchanges.
- The firm aims to provide liquidity in digital assets similar to its operations in equities and fixed income markets.
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Citadel Securities, the leading financial services provider and trading firm, is setting its eyes on the crypto market-making business. Sources told Bloomberg that the firm plans to become a liquidity provider on major exchanges like Coinbase, Binance, and Crypto.com.
President Donald Trump’s pro-crypto stance is likely the driving force behind this plan, according to the report. Historically, Citadel Securities has been hesitant about engaging in crypto market-making, particularly on exchanges frequented by retail investors, due to regulatory uncertainties in the US.
Confident about upcoming regulatory changes, the firm forecasts a significant increase in industry activity.
Ken Griffin’s market-making giant initially plans to establish trading teams outside the US once approved on exchanges. The firm’s commitment level may vary depending on how new regulations develop in the coming months.
Citadel Securities among Wall Street titans backing BlackRock’s Bitcoin ETF
Following the debut of its iShares Bitcoin Trust, BlackRock expanded the roster of authorized participants for the ETF to include prominent firms such as Goldman Sachs, Citigroup, Citadel Securities, UBS, and ABN AMRO, raising the total to nine. The inclusion aims to improve liquidity for the fund, which amassed nearly $55.8 billion in assets as of Feb. 21.
While long interested in the crypto market, Citadel Securities previously maintained a cautious approach, focusing primarily on institutional, regulated avenues. In 2022, the Miami-based firm and Virtu Financial joined forces to build a crypto trading ecosystem, aiming to provide efficient access to deep liquidity pools for digital assets, enhancing the trading experience for institutional investors.
Citadel Securities previously partnered with Charles Schwab and Fidelity Investments to launch EDX Markets in 2023, an institutional-only crypto exchange that mirrors traditional stock and bond market settlement structures.
Citadel Securities and other financial institutions have advocated for clearer regulatory frameworks around digital assets to create an institutional investment roadmap. The firm aims to provide liquidity in digital assets similar to its operations in the equities and fixed-income markets.
The move comes as Trump’s administration signals a more welcoming stance toward crypto assets. As president, Trump has issued an executive order on digital assets and established an SEC crypto task force led by Hester Peirce, a prominent industry advocate.
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