- Citadel Securities is preparing to enter crypto market-making, targeting major exchanges like Coinbase and Binance.
- The firm’s move is driven by Trump’s pro-crypto policies, with expectations of clearer regulations ahead.
- Citadel recently joined BlackRock’s Bitcoin ETF as a liquidity provider, signaling deeper institutional involvement in crypto.
Citadel Securities, one of the biggest players in traditional finance, is gearing up to enter the crypto market-making game. According to sources speaking to Bloomberg, the firm plans to provide liquidity on major exchanges like Coinbase, Binance, and Crypto.com—a move that signals a major shift in its stance on digital assets.
Why now? Trump’s pro-crypto policies may be the key driver. Historically, Citadel Securities has kept its distance, citing regulatory uncertainty and the risks of retail-heavy exchanges. But with policy shifts on the horizon, the firm is betting on a surge in institutional activity.
Trading Teams, Expansion & Regulatory Watch
- Citadel plans to launch trading teams outside the U.S. first, testing waters in global markets.
- Its level of commitment depends on regulatory developments in the coming months.
- The firm is closely watching new crypto rules, confident that clearer frameworks will boost adoption.
Ken Griffin’s firm has been interested in crypto for years but always played it safe—sticking to institutional-grade ventures rather than diving into retail-heavy, volatile exchanges.
Wall Street Giants & Bitcoin ETF Liquidity
Citadel’s crypto move isn’t happening in isolation. The firm recently joined forces with BlackRock, becoming one of nine market makers providing liquidity for BlackRock’s iShares Bitcoin Trust ETF, which now holds nearly $55.8 billion in a ssets.
- Goldman Sachs, Citigroup, and UBS are also involved, signaling a growing institutional embrace of crypto.
- Citadel previously partnered with Charles Schwab & Fidelity to launch EDX Markets in 2023, an institutional-only crypto exchange.
- In 2022, Citadel & Virtu Financial tried to build a crypto trading ecosystem, aiming to bridge institutional investors to digital assets.
Despite previous caution, Citadel Securities has long advocated for clearer crypto regulations, aiming to mirror its equities and fixed-income market strategies in digital assets.
Regulatory Winds Are Changing
Trump’s return to office is reshaping crypto policy:
- An executive order on digital assets set the stage for friendlier regulation.
- A newly formed SEC crypto task force, led by Hester Peirce, signals an institutional push for crypto frameworks.
- Citadel’s move is part of a bigger wave, as traditional finance players brace for a new era of digital asset adoption.
For now, Citadel’s crypto ambitions are unfolding cautiously—but if regulations go their way, expect them to dive in headfirst.
