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Citadel Securities, the trading behemoth founded by Ken Griffin, plans an expand into cryptocurrency market-making, according to a report from Bloomberg, citing people familiar with the matter. This move marks a significant shift from the firm’s previous cautious approach to the crypto sector. Citadel Securities is betting on a favorable regulatory environment under President Donald Trump’s administration to drive growth in the asset class.
The firm is seeking to become a liquidity provider on several cryptocurrency exchanges, including those operated by Coinbase Global (NASDAQ:COIN) Inc., Binance Holdings, and Crypto.com. Although the company has been reticent to engage with crypto exchanges popular among retail investors due to the regulatory uncertainty in the United States, it now plans to establish market-making teams initially outside the U.S.
The extent of Citadel Securities’ involvement in the crypto market will depend on how the regulatory landscape evolves in the coming months, the report noted.
Historically, Citadel Securities has avoided major crypto platforms that cater to retail traders. The collapse of Sam Bankman-Fried’s FTX in 2022, which highlighted the risks of conflicts of interest and fund manipulation due to a lack of business separation, reinforced the firm’s cautious stance.
Citadel Securities, along with other financial institutions, has been advocating for clear regulatory guidelines for investing in digital assets. The firm aims to be prepared to offer liquidity in digital assets, akin to its services in equities and fixed income, should the U.S. establish such regulations. As of now, Citadel Securities has not provided an immediate comment on these developments.
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