Ken Griffin’s Citadel Securities is preparing to enter the cryptocurrency market as a liquidity provider, expecting that Donald Trump’s pro-crypto stance will drive industry growth.
Previously, Citadel Securities remained cautious about crypto, avoiding major exchanges used by retail investors due to regulatory uncertainty.
Citadel Securities, led by CEO Peng Zhao, has grown from a small team into a global trading giant. It serves as a market maker in stocks, options, corporate bonds, Treasuries, and ETFs, competing with top investment banks.
However, the firm plans to become a market maker on platforms like Coinbase, Binance, and Crypto.com. Initially, it will set up market-making teams outside the U.S., depending on how regulations evolve.
The shift comes as Trump moves to position the U.S. as the “crypto capital of the planet.” Since taking office, he has introduced policies favouring digital assets, including appointing SEC Commissioner Hester Peirce, a well-known crypto advocate, to lead a new task force. These regulatory changes have encouraged institutions to reconsider their involvement in crypto.
Citadel Securities, one of the world’s largest market-making firms, has built its reputation in stocks, options, bonds, and ETFs. However, it previously avoided crypto due to concerns about transparency and conflicts of interest, especially after the 2022 collapse of FTX.
Instead, it partnered with Charles Schwab and Fidelity to launch EDX Markets in 2023, a crypto exchange designed exclusively for institutional investors.
With clearer regulations, Citadel now wants to expand its role in crypto, providing liquidity as it does in other markets. The firm and other financial institutions have pushed for regulatory guidelines to allow more institutional participation in digital assets.
Unlike Citadel, firms like Jane Street and Jump Crypto have been active in crypto trading since 2017. However, they scaled back U.S. operations in 2023 due to regulatory crackdowns, focusing instead on international markets like Dubai, Singapore, and Hong Kong. Despite their reduced presence, they never fully exited the market.
Also Read: Trump: Committed to Making America the Crypto Capital
