Citadel Securities to Enter Crypto Trading Market with Trumps Regulatory Support

Citadel Securities Plans to Enter Crypto Trading Amid Trump’s Support

Citadel Securities, the market-making giant led by Ken Griffin, is planning to become a liquidity provider for cryptocurrencies, capitalizing on President Donald Trump’s endorsement of the industry. This move marks a significant shift from the firm’s previous cautious approach to crypto market-making.

Citadel Securities has historically avoided crypto exchanges popular with retail investors due to regulatory uncertainties in the US. However, the firm now aims to join the roster of market makers on various exchanges, including those operated by Coinbase Global Inc., Binance Holdings, and Crypto.com. The firm intends to establish market-making teams outside the US initially, pending regulatory approval.

The decision to enter the crypto market is influenced by the potential for new regulations that could provide clarity and attract institutional investors. Citadel Securities has collaborated with brokerage firms like Charles Schwab and Fidelity Investments to create EDX Markets, an institution-only crypto exchange that went live in 2023. This platform offers trading in crypto products exclusively for institutional investors.

The financial industry anticipates increased activity in digital assets under the Trump administration, which has pledged to make the US the “crypto capital of the planet.” Trump has taken steps to overhaul regulations that hindered crypto activity during President Joe Biden’s tenure, including issuing an executive order on digital assets and establishing a crypto task force at the US Securities and Exchange Commission.

Citadel Securities, which has expanded from a small group supporting Griffin’s hedge fund to a global trading powerhouse, aims to provide liquidity for digital assets similar to how it operates in other asset classes like equities and fixed income. The firm’s entry into crypto trading could reshape the landscape, especially if the US adopts clearer regulations for digital asset investing.