**Citadel’s Entry into Crypto: A Friendly Challenge to Rivals Like Jane Street and Jump**
Citadel is making waves in the cryptocurrency space, putting pressure on competitors like Jane Street and Jump by utilizing its traditional finance expertise to address compliance challenges in the crypto world. With former President Donald Trump advocating for the U.S. to become a “crypto capital,” Citadel is strategically positioning itself to benefit from institutional inflows and standardized trading protocols by 2026. Ken Griffin’s Citadel Securities is gearing up to enter the cryptocurrency market-making arena, aligning with Trump’s positive outlook on digital assets. After previously steering clear of retail-focused crypto exchanges, Citadel is now seeking approval to provide liquidity on major platforms such as Coinbase, Binance, and Crypto.com. Initial operations are expected to launch outside the U.S., depending on regulatory developments.
Since 2023, Citadel Securities has focused its crypto efforts on institutional venues. That year, it teamed up with Charles Schwab and Fidelity to establish EDX Markets, an exchange designed for accredited investors. EDX is structured to reflect traditional market practices, separating custody and trading to reduce conflicts of interest. This new initiative to broaden its crypto liquidity offerings marks a significant strategic shift, fueled by the anticipated regulatory clarity under Trump. The Trump administration has embraced crypto-friendly policies, a stark contrast to the scrutiny seen during the Biden era. In January 2025, Trump signed an executive order directing agencies to create frameworks for digital assets. SEC Chair Hester Peirce, a long-time supporter of crypto, now leads a task force aimed at streamlining regulations. Citadel is eager to take advantage of these changes, positioning itself to meet the growing institutional demand for regulated access to cryptocurrencies.
Citadel’s cautious approach stands in contrast to peers like Jane Street and Jump Trading, which began their crypto market-making activities in 2017 but scaled back their U.S. operations amid enforcement actions in 2023. Both firms have continued their crypto activities overseas, focusing on vibrant markets like Dubai and Singapore. By delaying its entry, Citadel has managed to sidestep previous regulatory pitfalls while leveraging its deep expertise in equities, bonds, and ETFs. Retail crypto exchanges still face challenges with compliance, particularly regarding fund segregation and transparency. Citadel’s focus on institutional-grade infrastructure indicates it will prioritize platforms that align with traditional finance standards. The existing EDX model, which avoids direct retail access, may serve as a guiding framework for this approach.
Market makers like Citadel typically profit from bid-ask spreads, which require high-volume, liquid markets. The inherent volatility and fragmented liquidity in the crypto space can complicate this model. However, Trump’s commitment to establishing the U.S. as a “crypto capital” could draw in institutional capital, enhancing trading activity. Citadel’s move into this space follows in the footsteps of BlackRock and Fidelity, both of which have expanded their crypto offerings after receiving regulatory assurances. With a global reach, Citadel is well-positioned for success. CEO Peng Zhao has diversified the firm’s interests into Treasuries, ETFs, and international markets since 2018, making crypto market-making a natural extension of this growth strategy.
