Key Takeaways:
- Citadel Securities is exploring market-making opportunities on major crypto exchanges like Binance and Coinbase, initially focusing on operations outside the U.S.
- The firm’s involvement depends on U.S. regulatory developments, with renewed optimism from political signals favoring crypto growth.
- Citadel has prior crypto ties, including launching EDX Markets in 2023, but has faced controversy over alleged links to Terra’s collapse.
Citadel Securities is considering entering the crypto market-making space after years of waiting for regulatory clarity in the U.S.
According to a Bloomberg report, the firm is exploring opportunities to provide liquidity to major crypto exchanges like Binance, Coinbase, and Crypto.com.
Ken Griffin’s market-making giant Citadel Securities is looking to become a liquidity provider for cryptocurrencies, betting President Donald Trump’s embrace of the industry will usher in a boom for the asset class. https://t.co/Lk56t0hHEh
— Bloomberg Markets (@markets) February 24, 2025
Initially, its market-making teams will operate outside the U.S. as it monitors regulatory developments.
The extent of Citadel’s involvement will depend on how U.S. regulations evolve.
If conditions become favorable, the firm may expand its role in facilitating crypto trades, similar to its traditional asset market activities.
Citadel has largely avoided direct retail crypto trading due to regulatory uncertainty, but recent political signals—such as former President Trump’s pro-crypto stance—have revived industry optimism.
Despite its cautious approach, Citadel has already ventured into crypto.
In June 2023, it partnered with Charles Schwab and Fidelity Investments to launch EDX Markets, an institutional crypto exchange.
The firm was also linked to Terraform Labs before its collapse, though it denied allegations of shorting TerraClassicUSD.
Founded in 2002, Citadel Securities serves over 1,600 institutional clients and is backed by Sequoia Capital and Paradigm.
If it formally enters crypto market-making, it could significantly boost liquidity and institutional participation in the sector—pending regulatory developments.
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