Citadel Securities, the market-making powerhouse founded by Ken Griffin, is preparing to enter the cryptocurrency market, aiming to become a leading liquidity provider on major exchanges, according to Bloomberg. The firm’s strategic shift comes amid President Donald Trump’s pro-crypto stance, which many believe could ignite a boom in digital assets.
The move has generated significant buzz in financial circles, with market analysts weighing in on how the entry of such a formidable player could reshape the crypto market. Citadel Securities, which handles nearly a quarter of U.S. stock market trading volume and recently surpassed the New York Stock Exchange in stock trading volume, is setting its sights on exchanges like Coinbase Global Inc., Binance Holdings, and Crypto.com, sources familiar with the matter said.
Citadel Securities, distinct from the hedge fund Citadel LLC, is already a dominant force in traditional markets, offering liquidity in equities, futures, options, bonds, and currencies. The firm was valued at 155 billion RMB ($21.7 billion) on the 2024 Hurun Global Unicorn List, securing the 13th spot as a global fintech giant.
With around 1,600 employees from 80 countries, the firm boasts a highly specialized team, nearly half of whom hold advanced degrees—including 260 Ph.D. graduates in fields ranging from applied mathematics to bioinformatics.
The company’s CEO, Zhao Peng, a Beijing-born mathematics prodigy and one of the most prominent Chinese figures on Wall Street, has played a pivotal role in Citadel Securities’ meteoric rise. Under Zhao’s leadership, Citadel has not only become the largest market maker on the New York Stock Exchange but has also maintained a strong global presence, providing liquidity in over 11,000 U.S.-listed securities and more than 16,000 over-the-counter products.
Following the Trump lead
Citadel Securities’ expansion into crypto comes as the Trump administration takes steps to position the U.S. as the “crypto capital of the planet.” Trump’s executive order on digital assets and the U.S. Securities and Exchange Commission’s new crypto task force, led by industry advocate Hester Peirce, have injected fresh optimism into the sector.
Initially cautious, Citadel Securities had previously stayed away from retail-oriented crypto exchanges, particularly after the 2022 collapse of Sam Bankman-Fried’s FTX, which exposed risks around conflicts of interest and fund manipulation. Instead, Citadel co-launched EDX Markets in 2023 alongside Charles Schwab and Fidelity Investments. This institution-only exchange offers a safer, more regulated environment, mirroring traditional stock and bond market structures.
The potential entry of Citadel Securities into mainstream crypto market-making is seen as a double-edged sword. On the one hand, it could bring much-needed liquidity and stability to a market often criticized for its volatility. Citadel’s involvement could also pave the way for greater institutional participation, boosting market credibility and potentially driving up asset prices.
On the other hand, challenges remain. Citadel’s plans depend heavily on the evolution of U.S. regulations. The firm is preparing to launch its crypto market-making operations outside the U.S. initially, as it gauges how domestic regulatory frameworks develop. The firm’s strategy could shift based on new rules from the SEC or other regulatory bodies.
Market participants are also watching to see how Citadel’s approach compares with peers like Jane Street Group and Jump Crypto, both of which scaled back their U.S. crypto activities in 2023 but maintained a foothold overseas. Citadel’s sophisticated infrastructure and seasoned leadership under Zhao could give it an edge in navigating the complex crypto ecosystem.
Shogun Lin
