Citadel eyes market maker role in crypto exchanges

Published 25/02/2025, 14:52
© Reuters.

Citadel LLC, the prominent market maker on the New York Stock Exchange, might soon expand its operations to cryptocurrency exchanges such as Coinbase (NASDAQ:COIN). The firm’s CEO, Ken Griffin, expressed his intention for Citadel to engage in crypto trading while speaking at the UBS Financial Services Conference in Key Biscayne, Florida.

Griffin, who has previously been critical of cryptocurrencies, cited the need for clear regulatory guidelines as a catalyst for his firm’s potential entry into the space. He suggested that President Trump’s administration should advocate for such regulations to prevent fraud and encourage participation from banks and asset managers.

At the conference, Griffin highlighted the benefits of having major players involved in markets, stating, "We’ve seen time and time again in markets where your tier one players are allowed to participate are actually markets that clean themselves up."

He also commented on the current administration, labeling its approach to crypto regulation as "evil" and contrasting it with more positive initiatives like Elon Musk’s Department of Government Efficiency, which is reportedly considering blockchain technology to enhance government operations.

Griffin’s stance on cryptocurrency has evolved recently, especially after bitcoin reached a new milestone surpassing $100,000. He acknowledged the error in not engaging with crypto earlier and recognized the importance of digital assets in providing Americans with a sense of control in their lives.

This marks a significant shift from his earlier skepticism, which was reinforced by the collapse of Do Kwon’s Terra blockchain in 2022, an event that influenced his view of the industry for several years.

Despite his change in perspective, Griffin remains cautious about the practical benefits of cryptocurrencies, questioning the problems they solve for the economy. Yet, his latest remarks indicate a growing interest in the crypto market and a potential new direction for Citadel in the realm of digital assets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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