Ken Griffin’s Citadel Securities, one of the most dominant market-making firms in global finance, is preparing to enter the cryptocurrency market. The firm, known for its deep liquidity in equities, options, and fixed-income assets, plans to provide market-making services on major crypto exchanges. The move signals a strategic shift for Citadel, which has historically distanced itself from the volatile digital asset sector.
The timing aligns with President Donald Trump’s aggressive push for crypto-friendly regulations. Trump has vowed to transform the United States into the “crypto capital of the planet,” reversing the regulatory chill that defined the previous administration. Since taking office, he has issued an executive order on digital assets, while the Securities and Exchange Commission (SEC) has formed a dedicated crypto task force led by Hester Peirce, a longtime advocate for the industry.
Citadel’s move into crypto is a direct response to this shift. The firm is seeking to become a registered market maker on platforms like Coinbase, Binance, and Crypto.com, according to sources familiar with the plans. Initially, Citadel will establish trading operations outside the U.S., a precautionary measure as it navigates the evolving regulatory landscape.
Breaking from a Conservative Stance
Until now, Citadel Securities has been cautious about engaging in cryptocurrency trading. Unlike competitors such as Jane Street Group and Jump Trading, which have been active in crypto since 2017, Citadel largely avoided the sector due to regulatory uncertainty and concerns over market structure.
The collapse of Sam Bankman-Fried’s FTX in 2022 further reinforced its hesitation. The downfall of one of the largest crypto exchanges exposed major flaws in the industry, particularly the failure to separate custody, market-making, and trading operations—practices that led to conflicts of interest and allegations of fund mismanagement. Citadel’s leadership, led by CEO Peng Zhao, remained wary of these risks, choosing to focus on regulated financial markets instead.
Despite its absence from major crypto trading venues, Citadel has explored institutional pathways into digital assets. In 2023, it partnered with Charles Schwab and Fidelity Investments to launch EDX Markets, a crypto exchange designed exclusively for institutional investors. Unlike retail-focused platforms, EDX adopted a structure similar to traditional stock and bond markets, with clear segregation of trading and custody services.
Regulatory Landscape and Market Expectations
Citadel’s decision to expand its crypto operations hinges on the regulatory environment in the coming months. While the firm is optimistic about the Trump administration’s pro-crypto stance, the extent of its push into digital assets will depend on the clarity and stability of new rules.
The SEC’s new crypto task force, led by Commissioner Hester Peirce, aims to establish a framework for institutional participation. Industry players, including Citadel, have long advocated for defined guidelines enabling firms to trade digital assets with the same regulatory certainty as traditional securities. If these policies materialize, Citadel intends to provide liquidity to digital asset markets like it does for equities and fixed income.
Meanwhile, other trading giants have adjusted their approach. Jane Street and Jump Trading, which were once dominant forces in crypto market-making, scaled back their U.S. operations following a 2023 regulatory crackdown. However, both firms maintained their presence in offshore financial hubs such as Dubai, Singapore, and Hong Kong. Citadel’s strategy appears to follow a similar trajectory—testing the waters outside the U.S. before committing to a full-scale domestic expansion.
Positioning for a Crypto Future
Citadel’s planned entry into crypto trading highlights a broader shift among traditional financial firms. The inclusion of Citadel Securities as an authorized participant for BlackRock’s iShares Bitcoin Trust—an ETF that has amassed nearly $55.8 billion in assets—further highlights the firm’s increasing interest in digital assets.
In 2022, Citadel and Virtu Financial also collaborated on a crypto trading initiative aimed at institutional investors. Their goal was to create a structured, deep-liquidity trading environment similar to traditional financial markets. These moves indicate that, while Citadel previously hesitated, it is now positioning itself as a major liquidity provider in digital assets.
Trump’s push for a crypto-friendly regulatory framework has accelerated this shift. As the administration continues to redefine the digital asset space, firms like Citadel Securities are preparing to take advantage of new opportunities. If regulatory clarity emerges, Citadel’s market-making expertise could make it a formidable player in the cryptocurrency sector.
For now, the firm is taking a measured approach—securing approvals from major exchanges and establishing teams outside the U.S. But as the regulatory picture becomes clearer, Citadel’s influence in crypto trading could expand rapidly, shaping the market for years to come.
