The firm is entering crypto liquidity provision on major exchanges like Binance and Coinbase as U.S. regulations evolve.
Citadel Securities Eyes Crypto Market-Making
Citadel Securities is preparing to enter cryptocurrency market-making, targeting major exchanges such as Binance and Coinbase. This move follows regulatory changes in the U.S. under the Trump administration, which has signaled a friendlier stance toward digital assets.
Expanding Beyond U.S. Borders
Citadel plans to launch its crypto operations outside the U.S. while monitoring domestic regulations. The firm has not publicly commented on its strategy but is reportedly securing a foothold on international exchanges.
Institutional Entry Amid Competitor Retreat
Unlike firms such as Jane Street and Jump Crypto, which scaled back due to regulatory pressure, Citadel is positioning itself to fill the liquidity gap left behind. Its entry into digital assets follows its involvement in EDX Markets, an institutional crypto exchange launched with Fidelity and Charles Schwab in 2023.
Trump Administration’s Crypto Push
Donald Trump has expressed strong support for making the U.S. a global cryptocurrency hub. His administration has implemented pro-crypto policies, including forming a national crypto policy group and rejecting a central bank digital currency (CBDC).
SEC and CFTC Consider Regulatory Collaboration
Regulatory clarity remains a key issue for crypto firms. The SEC and CFTC are exploring joint efforts to create clearer guidelines, potentially easing compliance burdens and encouraging institutional participation in the sector.
Citadel’s Market-Making Strategy Faces Challenges
While Citadel’s crypto entry signals confidence in the market’s future, risks remain. Dependence on shifting regulations, competition from established players, and adapting to 24/7 crypto markets pose significant challenges.
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