Citadel Securities, a prominent financial firm, is reportedly gearing up to make a foray into the world of cryptocurrency market making. According to Bloomberg News, the company is looking to provide liquidity on major crypto exchanges such as Coinbase, Binance, and Crypto.com.
Sources familiar with the matter revealed that Citadel’s initial focus will be on non-US markets, pending approval from the exchanges. While the firm has not officially confirmed the extent of its involvement in the crypto market, it is clear that their expansion plans are in motion.
Unlike some of its competitors, Citadel has previously steered clear of crypto market-making activities. However, with the increasing regulatory clarity and confidence in the maturation of the crypto markets, the firm seems poised to enter this space.
The regulatory landscape for cryptocurrencies has seen significant developments in recent years. President Donald Trump’s administration has taken steps to create a regulatory framework for the industry, signaling a more supportive stance towards digital assets. The Securities and Exchange Commission (SEC) has also established a dedicated crypto task force, led by Commissioner Hester Peirce, known for her pro-innovation regulatory approach.
Citadel’s move into crypto market making comes at a time when regulatory challenges have prompted other firms to scale back their US-based operations. With a focus on international financial hubs like Dubai, Singapore, and Hong Kong, Citadel’s expansion signals a growing confidence in the future of crypto markets.
In addition to its market-making endeavors, Citadel has also been involved in the development of the EDX Markets exchange, in collaboration with brokerage firms Charles Schwab and Fidelity Investments. This exchange aims to replicate the settlement and custody mechanisms used in traditional securities markets, catering to institutional clients.
As Citadel prepares to enter the crypto market-making space, it will be interesting to see how their presence impacts the industry and how they navigate the evolving regulatory landscape. Stay tuned for more updates on Citadel’s crypto expansion journey.