Citadel Dives into Crypto: Griffin's U-Turn

Citadel Securities, a prominent market-making firm, has announced its entry into the cryptocurrency trading arena after years of expressing skepticism about the digital asset class. The company, led by billionaire Ken Griffin, is set to become a market maker on major crypto exchanges such as Coinbase, Binance, and Crypto.com, according to sources cited by Bloomberg.

Griffin, who once described crypto as a "jihadist call" against the U.S. dollar, has now seemingly embraced the industry. The firm, which processes approximately $503 billion in daily trades, accounting for nearly 35% of all U.S. stock trading volume, is reportedly seeking to establish teams outside the U.S. to facilitate its crypto trading operations.

Despite this apparent embrace, Griffin has maintained a degree of skepticism about crypto's fundamental value proposition. In a December 2023 interview with Fortune, he questioned the economic benefits of cryptocurrencies, asking, "What I don't care for about crypto is, what problem does it solve for our economy?"

Citadel's entry into the crypto market follows a series of pro-crypto moves by the U.S. government, including former President Trump's pro-crypto orders and the appointment of Hester Peirce to lead a crypto task force. Griffin praised these moves last month, stating that the involvement of tier-one players in the crypto space could help clean up the market.

Citadel's entry into the crypto market marks a significant milestone for institutional participation in the digital asset class. The firm's competitors, Jane Street and Jump Trading, established their own digital asset operations in 2017 and 2021, respectively. Additionally, Citadel has previously collaborated with Charles Schwab and Fidelity to launch EDX Markets, an institutional-only crypto exchange designed to mirror traditional financial market structures.

Citadel Securities did not immediately respond to Decrypt's requests for additional comment.