Citadel Securities Eyes Entry into Retail Crypto Market

Citadel Securities is reportedly exploring an expansion into cryptocurrency market-making for major retail exchanges, including Coinbase, Binance, and Crypto.com.

Key Takeaways: – Citadel Securities is exploring market-making for retail crypto exchanges like Coinbase, Binance, and Crypto.com. – The firm’s full entry into the crypto market depends on evolving U.S. regulations, with plans to initially establish market-making teams outside the U.S.

According to Bloomberg, the firm, which has historically been cautious about digital assets, intends to provide liquidity in the crypto sector, mirroring its role in traditional markets such as stocks, bonds, and ETFs.

The move marks a significant shift for Citadel Securities, which previously avoided direct involvement in crypto trading due to regulatory uncertainties in the United States. The company has been known for co-founding EDX Markets, an institutional trading platform that initially supported only Bitcoin, Ether, and Litecoin.

With over $60 billion of assets and one of the 10 largest hedge funds in the world, Citadel is now looking to make markets in Bitcoin and crypto. Do not let the noise drown out the signal. This is signal.

— James Lavish (@jameslavish) February 24, 2025

Sources familiar with the matter indicate that Citadel Securities’ full-scale entry into market-making will depend on how the regulatory landscape evolves in the coming months. The firm is said to be prepared to execute buy and sell transactions in crypto assets should clearer guidelines emerge under the administration of President Donald Trump.

Rather than launching domestically immediately, Citadel Securities is reportedly considering establishing market-making teams outside the U.S. before expanding within the country.

The strategic pivot follows years of skepticism from Citadel Securities regarding cryptocurrencies. The firm had previously expressed concerns over the lack of separation between custody, trading, and market-making activities on major exchanges, particularly in the wake of the FTX collapse in 2022. These reservations had kept the firm at a distance from direct participation in the crypto ecosystem until now.

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