- Citadel’s entry pressures rivals like Jane Street and Jump, leveraging traditional finance expertise to bridge crypto’s compliance gaps globally.
- Trump’s “crypto capital” push drives Citadel’s bid-ask spread strategy, betting on institutional inflows and standardized trading protocols by 2026.
Ken Griffin’s Citadel Securities plans to enter cryptocurrency market-making, aligning with former President Donald Trump’s supportive stance on digital assets. The firm, which previously avoided retail-focused crypto exchanges, now seeks approval to provide liquidity on platforms like Coinbase, Binance, and Crypto.com. Sources indicate initial operations will launch outside the U.S., pending regulatory developments.
Citadel Securities has limited its crypto involvement to institutional venues since 2023. That year, it partnered with Charles Schwab and Fidelity to create EDX Markets, an exchange for accredited investors.
EDX mirrors traditional market structures, separating custody and trading to mitigate conflicts. The new push into broader crypto liquidity signals a strategic shift, driven by anticipated regulatory clarity under Trump.
The Trump administration has prioritized crypto-friendly policies, contrasting with earlier Biden-era scrutiny. In January 2025, Trump signed an executive order directing agencies to establish digital asset frameworks. SEC Chair Hester Peirce, a long-time crypto advocate, now leads a task force to streamline rules.
Citadel aims to capitalize on these changes, positioning itself to serve institutional demand for regulated crypto access.
Citadel’s caution contrasts with peers like Jane Street and Jump Trading, which began crypto market-making in 2017 but scaled back U.S. operations amid 2023 enforcement actions.
Both firms maintained overseas crypto activities, focusing on hubs like Dubai and Singapore. Citadel’s delayed entry allows it to avoid prior regulatory risks while leveraging its expertise in equities, bonds, and ETFs.
Retail crypto exchanges still grapple with compliance gaps, particularly in fund segregation and transparency. Citadel’s emphasis on institutional-grade infrastructure suggests it will prioritize platforms aligning with traditional finance standards. EDX’s existing model, which avoids direct retail access, may inform this approach.
Market makers like Citadel profit from bid-ask spreads, requiring high-volume, liquid markets. Crypto’s volatility and fragmented liquidity pools complicate this model. However, Trump’s pledge to make the U.S. a “crypto capital” could attract institutional capital, boosting trading activity. Citadel’s move follows BlackRock and Fidelity, which expanded crypto offerings after regulatory assurances.
Citadel’s global reach strengthens its positioning. CEO Peng Zhao has diversified the firm into Treasuries, ETFs, and international markets since 2018. Crypto market-making aligns with this growth strategy, though profitability depends on regulatory outcomes. The SEC’s pending rules on custody and exchange oversight will shape Citadel’s operational scope.
Industry observers note Citadel’s influence could standardize crypto trading practices. Its entry may pressure exchanges to adopt tighter controls, mirroring stock market protocols. Competitors like Jump and Jane Street might reassess U.S. re-entry if Citadel gains traction.
For now, Citadel avoids retail-focused ventures, focusing on institutional partnerships. The firm’s expansion timeline remains fluid, adapting to policy shifts. As Trump’s policies unfold, Citadel’s calculated bet reflects a broader institutional pivot toward crypto, balancing opportunity with regulatory prudence.
