Citadel Securities, one of the world's largest market-making firms, is preparing to enter the cryptocurrency trading space as a liquidity provider on major crypto exchanges including Coinbase, Binance, and Crypto.com.
The move marks a notable shift for the company, which has historically maintained a cautious approach to cryptocurrency trading, particularly on retail-focused exchanges, due to regulatory uncertainties in the United States.
Led by CEO Peng Zhao, the firm plans to initially establish trading teams outside the U.S. once it receives approval from exchanges. The level of commitment will be adjusted based on how regulations evolve in the coming months.
The decision appears influenced by President Donald Trump's supportive stance on cryptocurrencies and his administration's efforts to position the U.S. as a leading crypto hub. Trump's appointment of SEC Commissioner Hester Peirce to lead a crypto task force and his executive order on digital assets have created a more welcoming regulatory environment.
Citadel Securities has already made strategic moves in the crypto space. In 2022, it partnered with Virtu Financial to develop a crypto trading ecosystem for institutional investors. The following year, the Miami-based firm collaborated with Charles Schwab and Fidelity Investments to launch EDX Markets, an institutional-focused crypto exchange.
The company currently serves as a market maker in various traditional financial instruments, including stocks, options, corporate bonds, Treasuries, and ETFs. Its planned expansion into crypto trading aims to provide similar liquidity services in digital assets.
This development follows BlackRock's recent addition of Citadel Securities as an authorized participant for its iShares Bitcoin Trust, alongside other major firms like Goldman Sachs and Citigroup. The ETF has accumulated approximately $55.8 billion in assets as of February 21.
The timing of Citadel's entry contrasts with some competitors like Jane Street and Jump Crypto, which scaled back their U.S. operations in 2023 amid regulatory pressures, focusing instead on markets in Dubai, Singapore, and Hong Kong.