(Bloomberg) -- Ken Griffin’s market-making giant Citadel Securities is looking to become a liquidity provider for cryptocurrencies, betting President Donald Trump’s embrace of the industry will usher in a boom for the asset class.
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It’s a clear pivot from the firm’s previously cautious stance on crypto market-making. Citadel Securities has had a limited presence in crypto trading, having steered clear of exchanges frequented by retail investors due to a lack of regulations around it in the US.
The firm aims to get added to the roster of market makers on various exchanges, including those run by Coinbase Global Inc., Binance Holdings and Crypto.com, according to people familiar with the matter.
Once the firm is approved on exchanges, it initially plans to set up market-making teams outside the US, the people said, asking not to be identified as the plans aren’t public. The extent of the push and Citadel’s desire could change based on how or if new regulations roll out in the coming months.
Miami-based Citadel Securities didn’t have an immediate comment.
Until now, Citadel Securities has stayed off major crypto venues frequented by retail traders. After the collapse of Sam Bankman-Fried’s FTX in 2022, crypto exchanges drew criticism for a failure to separate businesses — including custody, market-making and trading — that can result in conflicts of interest and in the manipulation of funds.
To create some certainty and serve institutional clients, Citadel Securities teamed up with brokerage firms, including Charles Schwab and Fidelity Investments, to form an institution-only crypto exchange that mirrored the way assets are held and settled in stock and bond markets. That venue, EDX Markets, went live in 2023, and offers trading in crypto products only for institutional investors.
Citadel Securities and other financial firms have been pushing for regulators to establish rules around investing in digital assets, creating a roadmap for institutions to get involved. If the US does that, the firm wants to be ready to provide liquidity, buying and selling digital assets like they do in other asset classes like equities and fixed income, the people said.
‘Crypto Capital’
The financial industry is gearing up for more activity in digital assets under the Trump administration.