Citadel Securities Ventures into Cryptocurrency Market-Making

Citadel Securities, one of the most influential market-making firms in the world, is making a significant move into the cryptocurrency sector, Bloomberg reported on Tuesday. Long known for its dominance in equities, options, and fixed income trading, the firm is now looking to become a key liquidity provider for digital assets,

The decision to enter crypto comes as the regulatory landscape in the U.S. appears to be evolving under President Donald Trump’s administration. Trump has openly pledged to make the U.S. the "crypto capital of the planet," promising a more accommodating regulatory environment compared to the previous administration. This policy shift has sparked renewed interest from major financial institutions, including Citadel Securities, which had previously maintained a cautious distance from digital assets.

Citadel founder, billionaire Ken Griffin, has been a vocal critic of digital assets in the past. In 2021, he described crypto as a "jihadist call" against the U.S. dollar, questioning its real-world utility. However, Griffin has since tempered his stance, particularly as regulatory clarity improves and institutional participation grows.

The firm’s entry follows in the footsteps of other major trading houses, such as Jane Street and Jump Trading, which embraced digital assets years earlier. However, Citadel Securities brings a level of market-making expertise and institutional credibility that could have a profound impact on liquidity in the crypto markets.

Building Crypto Market-Making Teams Overseas

According to Bloomberg sources, Citadel Securities plans to establish market-making teams outside of the U.S., focusing on providing liquidity on major exchanges such as Coinbase, Binance, and Crypto.com. The firm is expected to take a measured approach, ensuring that its operations align with emerging regulatory standards before fully scaling its efforts.

Citadel Securities’ move also underscores a growing demand for high-quality liquidity in digital asset markets. Crypto exchanges have historically faced criticism over their market structures, particularly regarding conflicts of interest, as seen in the collapse of Sam Bankman-Fried’s FTX in 2022. Citadel’s presence could bring a level of professionalization and risk management akin to traditional financial markets.

This isn’t Citadel Securities’ first foray into crypto. In 2023, the firm joined forces with brokerage giants Charles Schwab and Fidelity Investments to launch EDX Markets, an institutional-only digital asset exchange. EDX Markets was designed to replicate the structure of traditional financial markets, ensuring clear separation between exchange, custody, and trading functions—addressing some of the biggest criticisms levied at retail-focused crypto platforms.

Unlike traditional crypto exchanges that cater to both retail and institutional investors, EDX Markets exclusively serves institutional clients. It follows a non-custodial model, meaning it does not hold clients' digital assets directly.

"We've seen time and time again in markets that when tier-one players are allowed to participate, they actually clean themselves up," Griffin recently said in an interview with the South Florida Business Journal. "So I'd like to see that happen in the cryptocurrency space."

Regulatory Tailwinds and Market Impact

The timing of Citadel Securities’ crypto expansion coincides with a broader industry push for regulatory clarity. Trump’s administration has already taken steps to redefine the digital asset regulatory framework, including issuing an executive order on crypto and appointing longtime industry advocate Hester Peirce to lead an SEC crypto task force.

These developments have created an environment where traditional financial institutions feel more comfortable engaging with crypto markets. Should the U.S. solidify its regulatory stance, Citadel Securities stands to play a major role in shaping the industry’s next phase of institutional adoption.