TLDR
- Citadel Securities is exploring becoming a liquidity provider for major crypto exchanges including Binance, Coinbase, and Crypto.com
- CEO Ken Griffin, once a crypto skeptic, now acknowledges missing out on crypto trading opportunities
- Regulatory clarity under the Trump administration is a key factor in Citadel’s decision-making process
- Initial market-making teams will be set up outside the US
- Citadel previously partnered with Charles Schwab and Fidelity to launch EDX Markets, an institution-only crypto exchange
Citadel Securities, one of the world’s largest market makers, is looking to enter the cryptocurrency trading space by providing liquidity to major crypto exchanges. After years of cautious waiting for improved regulations, the company is now planning to set up market-making teams for exchanges like Binance, Coinbase, and Crypto.com, according to reports from Bloomberg.
Ken Griffin, the billionaire founder and CEO of Citadel LLC, shared these plans at the 2025 UBS Financial Services Conference in Key Biscayne, Florida. Griffin’s move toward crypto represents a major shift for the Wall Street giant, which had previously avoided direct involvement in retail crypto trading due to regulatory concerns.
The company plans to start its crypto market-making operations outside the United States. This cautious approach allows Citadel to gain experience in the crypto markets while waiting for clearer regulations at home. Market making involves buying and selling assets to keep markets liquid and stable, a service Citadel already provides for traditional financial markets.
Griffin, who once called bitcoin “a jihadist call” against the dollar, has changed his stance on cryptocurrencies. At the conference, he admitted regretting not getting into crypto trading sooner, though he still questions its utility. “What I don’t care for about crypto is, what problem does it solve for our economy? What problem does it solve?” Griffin said in December.
The timing of Citadel’s interest seems linked to promises made by President Donald Trump to make the United States the “crypto capital” of the world. Griffin specifically mentioned that the Trump administration should push for clear regulatory guidelines to keep fraud at bay and enable banks and asset managers to enter the market.
Griffin Evolves From Crypto Skeptic to Market Maker
Griffin criticized the previous Biden administration’s approach of “regulation by enforcement” in the crypto space, calling it “evil.” He expressed support for efforts like Elon Musk’s Department of Government Efficiency, which is considering using blockchain technology to improve government productivity.
The extent of Citadel’s involvement as a market maker will depend on how the regulatory environment develops in the coming months. According to sources close to the matter, Citadel Securities would be ready to provide liquidity and trade cryptocurrencies just as they do with other asset classes if regulatory clarity emerges.
This isn’t Citadel’s first connection to the crypto industry. In June 2023, the firm partnered with brokerage companies Charles Schwab and Fidelity Investments to launch EDX Markets, a cryptocurrency exchange designed exclusively for institutional investors.
Citadel Securities also had a brief partnership with Terraform Labs before its collapse in 2022. Following the collapse of the TerraClassicUSD stablecoin, former Terraform CEO Do Kwon accused Citadel Securities of intentionally shorting the stablecoin to the point that it lost its peg. Citadel denied these claims, stating it only conducted two test transactions worth about $0.13 in total.
In January 2022, crypto-focused venture capital firms Sequoia Capital and Paradigm invested a combined $1.15 billion in Citadel Securities, showing early connections between the firm and the crypto world.
Citadel, the hedge fund side of Griffin’s business empire, was founded in 1990 and currently manages over $63 billion in assets, making it one of the largest hedge funds globally. Citadel Securities, which launched in 2002, serves more than 1,600 institutional clients, including many of the world’s largest central banks and sovereign wealth funds.
Griffin’s changing views on crypto mirror the industry’s growing acceptance by traditional financial institutions. On the same day that bitcoin surpassed $100,000 for the first time, Griffin told the Times that crypto is part of American people reclaiming “agency” in their lives after electing Donald Trump.
This isn’t the first time Griffin has hinted at Citadel entering the crypto space. In 2022, weeks before the collapse of Terra that triggered a market-wide downturn, Griffin said it was “fair to assume” Citadel would begin to engage with the industry “over the months to come.”
Griffin explained his reasoning at that time: “I still have my skepticism, but there are hundreds and millions of people in this world today who disagree with that. To the extent that we’re trying to help institutions and investors solve their portfolio allocation problems, we have to give serious consideration to being a market maker in crypto.”
That earlier plan didn’t come to pass, likely due to the market crash that followed. The Terra collapse and resulting market fallout probably influenced Griffin’s cautious approach to the industry in the years since.
Market making is an essential service in financial markets, helping to ensure liquidity and price stability. If Citadel Securities does become a crypto market maker, it could bring more stability and institutional credibility to crypto exchanges, potentially attracting more traditional investors to the space.
The move by Citadel Securities reflects a growing trend of traditional financial institutions entering the cryptocurrency space, especially as regulatory frameworks begin to take shape and institutional interest in digital assets continues to grow.
According to Bloomberg’s sources, Citadel Securities has not made a final decision yet, and its plans could still change depending on market conditions and regulatory developments. The company has not provided an immediate response to requests for comment on these reports.
