Citadel Securities, one of the largest TradFi market makers, plans to start providing liquidity on crypto exchanges, anticipating industry growth amid support for the sector from Donald Trump’s administration.
Citadel Securities is preparing to expand its presence in the cryptocurrency sector, according to Bloomberg. The company aims to become a liquidity provider on exchanges such as Coinbase, Binance, and Crypto.com, marking a significant shift from its previously cautious stance on digital assets.
As one of the world’s largest market makers, Citadel Securities plays a key role in ensuring liquidity in global financial markets. Notably, the firm handles approximately 25% of the trading volume of U.S.-listed equity options.
According to Bloomberg sources, Citadel Securities initially plans to focus on providing liquidity on crypto exchanges outside the United States due to regulatory uncertainty in the domestic market. However, the strategy may be adjusted depending on potential legislative changes, which the company expects to see in the coming months.
Previously, Citadel Securities avoided participation in the crypto market, particularly on platforms catering to retail investors. However, in 2023, the company, along with Charles Schwab and Fidelity Investments, backed EDX Markets, a crypto exchange targeting institutional clients.
The collapse of FTX in 2022 led to increased regulatory pressure in the U.S., causing many institutional firms to adopt a more cautious approach toward the cryptocurrency sector. In 2023, major market makers, including Jane Street Group and Jump Trading, significantly reduced their presence in the U.S. crypto market.
