Citadel Securities Plans to Enter Crypto Trading Amid Trump’s Support
Citadel Securities, the market-making giant led by Ken Griffin, is planning to become a liquidity provider for cryptocurrencies, capitalizing on President Donald Trump’s endorsement of the industry. This move signifies a shift from the firm’s previous cautious approach to crypto market-making.
Citadel Securities has largely avoided crypto exchanges popular with retail investors due to the lack of regulations in the US. However, the firm aims to join the roster of market makers on various exchanges, including those operated by Coinbase Global Inc., Binance Holdings, and Crypto.com. Initially, Citadel plans to establish market-making teams outside the US, pending regulatory approval.
The firm has collaborated with brokerage firms like Charles Schwab and Fidelity Investments to create EDX Markets, an institution-only crypto exchange that went live in 2023. This platform offers trading in crypto products exclusively for institutional investors.
Citadel Securities and other financial firms are advocating for regulators to establish rules for investing in digital assets, aiming to create a clear path for institutional involvement. If the US government implements these regulations, Citadel is prepared to provide liquidity for digital assets, similar to its operations in other asset classes such as equities and fixed income.
Under the Trump administration, the financial industry anticipates increased activity in digital assets. Trump has pledged to make the US the “crypto capital of the planet” and has taken steps to overhaul rules that hindered activity during President Joe Biden’s tenure. The US Securities and Exchange Commission has also launched a task force on crypto, led by Hester Peirce, a long-time advocate for the industry.
Citadel Securities, which has expanded from a small group alongside Griffin’s hedge fund to a global trading powerhouse, has stayed away from crypto market-making. However, other firms like Jane Street Group and Jump Crypto have been active in crypto trading, though they scaled back their US operations amid regulatory scrutiny in 2023. Both firms continued to engage in crypto market-making overseas.
Leave a Reply