Citadel Securities, a financial giant managing $64 billion in assets, is stepping into the cryptocurrency market. This is a major shift for a firm that once kept its distance from digital assets. So, why now?
With Trump backing crypto and the U.S. pushing to become a global crypto hub, more major firms are eyeing this trillion-dollar industry. Citadel is diving head-first into the trend. The firm plans to provide crypto trading services and act as a liquidity provider on platforms like Coinbase, Binance, and Crypto.com.
For years, Citadel remained cautious about crypto. But with shifting regulations and growing institutional interest, something has changed.
Let’s dive in.
Citadel’s decision comes as the U.S. government becomes more open to integrating cryptocurrency into the financial system. With clearer regulations and growing institutional interest, traditional financial firms are finding new opportunities in digital assets.
To start, Citadel will set up its crypto trading operations outside the U.S., according to Bloomberg. This strategy allows the firm to test international markets while keeping an eye on regulatory changes in the U.S.
As one of the biggest market makers in traditional finance, Citadel helps keep markets stable by providing liquidity. Now, it aims to do the same for cryptocurrency. By offering large-scale liquidity, Citadel can help reduce volatility and make crypto trading more attractive to institutional investors.
Previously, Citadel avoided these services due to regulatory concerns. The FTX collapse reinforced this caution, as it exposed the risks of firms mixing customer funds with company assets.
Led by billionaire Ken Griffin, Citadel has already taken steps into crypto. In 2023, it partnered with Charles Schwab and Fidelity Investments to launch EDX Markets, a crypto exchange built for institutional investors. EDX was designed to function like traditional financial markets, providing a secure and regulated trading platform.
Citadel Securities was also linked to Terraform Labs before its collapse. After Terra’s stablecoin crashed in 2022, Terraform’s founder, Do Kwon
Before expanding into crypto, Citadel received a $1.15 billion investment from Sequoia and Paradigm. Founded by Ken Griffin, Citadel now manages $63 billion, while Citadel Securities serves top financial institutions worldwide.
Citadel’s entry into crypto is a strong signal that digital assets are becoming part of mainstream finance. With a Wall Street heavyweight now involved, the crypto market could see more stability, increased institutional investment, and stronger legitimacy.
As Citadel expands its crypto operations, it marks a shift from a restrictive regulatory environment toward full financial integration. This move highlights how traditional finance and cryptocurrency are becoming increasingly connected, setting the stage for wider adoption in the future.
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