- Market making giant Citadel Securities plans to enter retail crypto trading on major exchanges, expanding beyond its institutional focus.
- The firm’s current crypto presence through EDX Markets generates $36 billion in annual volume, equivalent to one day’s trading on Binance.
- Initial market making operations will be established outside the U.S., pending regulatory developments.
- EDX Markets recently expanded from three to fifteen supported cryptocurrencies, including major DeFi tokens.
- Citadel Securities already profits significantly from payment for order flow in traditional markets, with Robinhood partnership generating 12% of transaction revenues in 2024.
Citadel Securities, one of Wall Street’s largest market makers, is preparing to enter the retail cryptocurrency trading space through major exchanges including Coinbase, Binance, and crypto.com, according to sources familiar with the matter. The move marks a significant expansion beyond the firm’s current institutional crypto presence through EDX Markets.
The firm’s strategic shift comes as cryptocurrency trading volumes on retail platforms dwarf those of institutional venues. EDX Markets, co-founded by Citadel Securities in 2022, recorded $36 billion in total trading volume for 2024 – a figure that Binance achieves in a single day of spot trading, with its derivatives volume reaching triple that amount.
Historical evidence suggests Citadel Securities‘ involvement in crypto markets may predate this announcement. Court documents from a 2022 lawsuit against a former employee revealed the firm’s first systematic crypto trade occurred in Asia that March. That same year, the firm faced allegations in legal proceedings suggesting its possible role in the Terra stablecoin collapse.
The expansion of EDX Markets‘ supported assets reflects growing institutional acceptance of cryptocurrencies beyond Bitcoin and Ethereum. The platform recently added twelve new tokens, including prominent layer-one protocols like Solana and XRP, major DeFi tokens such as Aave and Uniswap, and the USDC stablecoin.
Citadel Securities‘ expertise in payment for order flow – a practice where market makers compensate brokers for routing customer trades through them – could prove advantageous in crypto markets. The firm currently accounts for 12% of Robinhood’s transaction revenues through this arrangement, while traditional brokers like Charles Schwab earn substantial income from similar arrangements, reporting over $1 billion in the first nine months of 2024.
Market makers serve a crucial role in financial markets by providing liquidity and ensuring efficient price discovery. Citadel Securities‘ entry into retail crypto trading could potentially reduce trading costs and improve market efficiency, though initial operations will be conducted outside the United States until regulatory clarity emerges.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Japanese Investment Firm Metaplanet Buys 135 Bitcoin Hours Before Price Drop
- Crypto Reporter Discloses Holdings of Multiple Digital Assets and DeFi Investments
- Bitcoin Plunges Below $90K Amid ETF Outflows and Market Tensions
- Singapore Man Loses $125M in Massive Crypto Malware Scam
- South Dakota Lawmakers Kill Bill to Allow State Bitcoin Investments
