Citadel Securities to Venture into Crypto Trading After Trump's Endorsement -

Citadel Securities, the market-making giant spearheaded by Ken Griffin, is gearing up to consider becoming a liquidity provider for cryptocurrencies, motivated by President Donald Trump’s embrace of the sector to trigger growth within this asset class.

This represents a notable departure from the firm’s previously cautious stance on crypto market-making. Citadel Securities has kept a low profile in cryptocurrency trading, steering clear of exchanges favored by retail investors due to the lack of regulation in the US cryptocurrency landscape.

Ken Griffin

The company plans to join the ranks of market makers operating across various exchanges, including those controlled by Coinbase Global, Binance Holdings, and Crypto.com, as per reports from sources familiar with the matter.

Pending approval from these exchanges, Citadel intends to build market-making teams outside the United States, according to insiders who chose to remain anonymous due to the confidential nature of the discussions. The extent and enthusiasm for this initiative may shift depending on the potential advent of new regulations in the coming months.

Based in Miami, Citadel Securities has not released an immediate comment.

Up until now, Citadel Securities has primarily avoided major crypto platforms that are popular among retail investors. Following the 2022 collapse of Sam Bankman-Fried’s FTX, various crypto exchanges faced backlash for failing to duly separate operations such as custody, market-making, and trading, which can give rise to conflicts of interest and potential manipulation.

To provide a degree of assurance and cater to institutional clients, Citadel Securities has partnered with brokerage firms like Charles Schwab and Fidelity Investments to create an exchange specifically for institutional investors, designed to embody the asset management and settlement processes found in stock and bond markets. This platform, EDX Markets, commenced operations in 2023, offering crypto products exclusively for institutional trading.

Citadel Securities, along with several other financial entities, has been actively urging regulators to establish clear guidelines for digital asset investments, thus facilitating a framework for institutional participation. Should the US advance such regulations, Citadel aims to be ready to deliver liquidity for trading digital assets, similar to its activities in equities and fixed income markets, the sources noted.

‘Crypto capital’

The financial sector is gearing up for heightened engagement in digital assets with the anticipated Trump administration.

During his campaign, Trump promised to establish the US as the “crypto capital of the planet,” and since taking office, he has been revising rules that restricted activities during President Joe Biden’s administration. Trump swiftly issued an executive order focused on digital assets, and the US Securities and Exchange Commission began a crypto-focused task force led by Hester Peirce, a long-time supporter of the industry.

Citadel Securities has transformed from a small unit alongside Griffin’s hedge fund into a formidable global trading entity, operating not only in US-listed markets but also internationally, expanding its reach into products favored by investment banks under CEO Peng Zhao’s guidance. The firm functions as a market maker across equities, options, corporate bonds, Treasuries, and exchange-traded funds.

Nonetheless, unlike its trading competitors, the firm has largely steered clear of the crypto market-making space. Jane Street Group, well-known for its dominance in ETF and corporate bond markets—representing the bulk of its operations—has been engaged in crypto trading since 2017. In contrast, Jump Crypto has developed its own crypto division to emerge as a leading market maker within the digital asset realm.

Both companies, however, scaled back their crypto trading activities in the US after a regulatory crackdown in 2023. A surge of crypto investigations within the US has led firms to look towards financial centers abroad, such as Dubai, Singapore, and Hong Kong. Although Jump and Jane Street have maintained some level of crypto market-making, they have done so on a reduced scale, continuing their dedication to the asset class.

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