Market maker Citadel Securities, a subsidiary of hedge fund Citadel, intends to create an ‘ecosystem’ for trading cryptocurrencies. CoinDesk reports, citing sources.
According to one of them, among the partners are Virtu Financial, which specializes in high-frequency trading and market making, as well as venture firms Sequoia Capital and Paradigm. The source did not rule out expanding the list with other asset managers and industry leaders.
“This more resembles a trading ecosystem or marketplace than an exchange,” the source said.
He noted that the project would enable ‘more efficient access to deep liquidity pools’.
“Thus, a group of industry leaders is closely cooperating to ensure safe, clean, compliant and reliable trading of digital assets,” the source said.
Another source told the publication that Citadel Securities has ‘quietly hired executives’ for the project. According to a third source, the firm is negotiating on ‘a huge amount of systemic engagements’ by Citadel’s subsidiaries.
Citadel Securities, Virtu Financial, Paradigm and Sequoia Capital did not provide comments to the publication.
In October 2021, Citadel head Kenneth Griffin said that his company would not back digital assets until the market is properly regulated.
In April 2022, billionaire said his skepticism about cryptocurrencies was mistaken.
Later, Griffin compared digital assets to abstract art and said that Citadel would enter the market as a liquidity provider.
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