Wall Street Giant Citadel Securities to Begin Crypto Trading, Boosting Liquidity
Zameer Attar25 Feb 20254 min read
Citadel Securities, a financial giant managing $64 billion in assets, is stepping into the cryptocurrency market. This is a major shift for a firm that once kept its distance from digital assets. So, why now?
With Trump backing crypto and the U.S. pushing to become a global crypto hub, more major firms are eyeing this trillion-dollar industry. Citadel is diving head-first into the trend. The firm plans to provide crypto trading services and act as a liquidity provider on platforms like Coinbase, Binance, and Crypto.com.
For years, Citadel remained cautious about crypto. But with shifting regulations and growing institutional interest, something has changed.
Let’s dive in.
Why Citadel Is Entering Crypto Now
Citadel’s decision comes as the U.S. government becomes more open to integrating cryptocurrency into the financial system. With clearer regulations and growing institutional interest, traditional financial firms are finding new opportunities in digital assets.
To start, Citadel will set up its crypto trading operations outside the U.S., according to Bloomberg. This strategy allows the firm to test international markets while keeping an eye on regulatory changes in the U.S.
Bringing Stability to Crypto Trading
As one of the biggest market makers in traditional finance, Citadel helps keep markets stable by providing liquidity. Now, it aims to do the same for cryptocurrency. By offering large-scale liquidity, Citadel can help reduce volatility and make crypto trading more attractive to institutional investors.
Previously, Citadel avoided these services due to regulatory concerns. The FTX collapse reinforced this caution, as it exposed the risks of firms mixing customer funds with company assets.
Citadel’s Crypto Footprint
Led by billionaire Ken Griffin, Citadel has already taken steps into crypto. In 2023, it partnered with Charles Schwab and Fidelity Investments to launch EDX Markets, a crypto exchange built for institutional investors. EDX was designed to function like traditional financial markets, providing a secure and regulated trading platform.
Citadel Securities was also linked to Terraform Labs before its collapse. After Terra’s stablecoin crashed in 2022, Terraform’s founder, Do Kwon Do Kwon Do Kwon is a former South Korean blockchain entrepreneur and investor. He co-founded Terraform Labs in 2018 and is best known for creating the Terra ecosystem to impact blockchain projects. With the growing prominence of the innovative algorithmic stablecoin TerraUSD and its native token Luna, he initially drew significant global attention for his approach to decentralized finance. Quick Facts Full Name Kwon Do-Hyung Birth 06-09-1991 in Seoul, South Korea Nationality Korean (South Korea) Education Stanford University, Daewon Foreign Language High School Marital Status Married to Ms. Lee (Now separated) Net Worth $135 million (refer here) U.S. authorities opened an investigation into Do Kwon's alleged role in staging fraudulent operations that aided in the Terra ecosystem's collapse in April 2023. As a result, many users may have lost their investments worth billions. Do Kwon - Professional Details 2018: Co-founded Terraform Labs and launched the Terra ecosystem with its algorithmic stablecoin, TerraUSD, and token Luna. 2021: Pushed for rapid growth in decentralized finance, placing Terra as a global blockchain developer. 2022: Faced a catastrophic market collapse as TerraUSD and Luna crashed, resulting in over $40 billion in losses. 2023: Became entangled in legal cases and regulatory investigations amid allegations of fraud and market manipulation. Do Kwon stated that he is not guilty of his charges after being extradited to the United States in January 2025. He is currently facing charges for fraud charges in US courts. With this event, the demand for clear regulations and policies of decentralized finance gained momentum. Useful Links to Connect With Do Kwon Platform Link X (formerly Twitter) lee (@dokwon) / X Official Website Terra.Money LinkedIn Do Kwon님 - Terraform Labs | LinkedIn EntrepreneurCrypto and Blockchain ExpertChief Executive Officer , accused Citadel of causing it. However, Citadel denied any involvement, saying it had only conducted two small test trades. The lawsuit against Citadel never gained ground.
Before expanding into crypto, Citadel received a $1.15 billion investment from Sequoia and Paradigm. Founded by Ken Griffin, Citadel now manages $63 billion, while Citadel Securities serves top financial institutions worldwide.
What This Means for the Crypto Market
Citadel’s entry into crypto is a strong signal that digital assets are becoming part of mainstream finance. With a Wall Street heavyweight now involved, the crypto market could see more stability, increased institutional investment, and stronger legitimacy.
As Citadel expands its crypto operations, it marks a shift from a restrictive regulatory environment toward full financial integration. This move highlights how traditional finance and cryptocurrency are becoming increasingly connected, setting the stage for wider adoption in the future.
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