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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Ken Griffin’s Citadel Securities plans to enter the crypto market-making business, targeting major exchanges including Coinbase Global Inc., Binance Holdings, and Crypto.com, Bloomberg reported Monday, citing sources with knowledge of the matter.
The market-making giant initially plans to establish trading teams outside the US once approved on exchanges, the people said. The firm’s commitment level may vary depending on how new regulations develop in the coming months.
This marks a shift from Citadel Securities’ previously cautious approach to crypto market-making. The firm has maintained limited involvement in crypto trading, avoiding retail-focused exchanges due to regulatory uncertainty in the US.
The Miami-based firm 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.
Unlike competitors like Jane Street Group and Jump Crypto, which entered crypto trading earlier but scaled back US operations during the 2023 regulatory crackdown, Citadel Securities has largely stayed away from crypto market-making. Under CEO Peng Zhao, the firm has grown from a small unit alongside Griffin’s hedge fund into a global trading powerhouse across various traditional asset classes.
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