Author: Zen, PANews

In mid-November, the cryptocurrency exchange Kraken announced the completion of two financing rounds totaling $800 million, with its latest valuation soaring to $20 billion. In the second transaction of this round, Citadel Securities, one of the world's largest market makers, directly invested $200 million as a strategic investor, joining the shareholder list alongside institutions like Jane Street and DRW.

Another significant financing this month was for blockchain payment company Ripple, which secured a $500 million strategic investment, bringing its latest valuation to $40 billion, with Citadel Securities also among the lead investors. Additionally, the RWA privacy blockchain Canton Network completed a $135 million financing round in June, where Citadel Securities' name was still present in the list of investors.

From avoiding the sector to collaborating on the institutional exchange EDX Markets, and preparing to provide liquidity on leading platforms while deeply betting on stablecoin companies and RWA public chains, Citadel Securities has fully demonstrated a reversal in its attitude towards crypto assets in less than three years.

Change of Stance: From a "Crusade" Against the Dollar to Testing the Waters

In recent years, Citadel Securities' attitude towards cryptocurrencies has undergone a significant transformation.

In 2021, Citadel Securities founder Ken Griffin openly stated that due to regulatory uncertainties, the company had been avoiding crypto trading, likening the crypto frenzy to a "crusade" against the dollar. At that time, Griffin believed that the lack of clear regulation made the crypto market too risky, and he was unwilling to venture into a regulatory vacuum. During that period, traditional financial giants were generally wary of the crypto space, and such strong statements were quite common.

However, entering 2022, Griffin began to soften his stance, publicly admitting that he had misjudged the situation. He pointed out that the total market capitalization of the crypto market had reached about $2 trillion, indicating that his judgment was incorrect. With changes in client and market demand, Griffin stated that Citadel Securities had seriously considered becoming a market maker in the crypto market. This change in attitude marked Citadel Securities' "final push" into the cryptocurrency industry.

In September 2022, EDX Markets (EDXM), an institutional-grade cryptocurrency exchange, was established through a collaboration of Citadel Securities, Fidelity, Charles Schwab, and other brokerage firms, global market makers, and venture capital companies. The CEO of EDXM was Jamil Nazarali, the former global head of business development at Citadel Securities, who later transitioned to executive chairman by the end of 2024.

After nine months of technical improvements, EDXM officially launched in the U.S. in June 2023. It adopted a differentiated operating model: it does not custody customer assets but clears trades through independent brokers, initially offering trading for only four mainstream cryptocurrencies: Bitcoin, Ethereum, Litecoin, and others. This non-custodial, limited-asset model aligns with regulatory requirements for the separation of exchange and brokerage functions and reflects the cautious approach of traditional institutions like Citadel in "testing the waters" in crypto.

Preparing to Enter the Crypto Market Making Business

If EDX Markets was just an important transitional attempt for Citadel Securities from hostility towards crypto to participation, then in the warming macro environment and regulatory climate of 2025, Citadel Securities is set to truly make its mark in the cryptocurrency field.

In the first half of this year, Citadel Securities announced plans to become a liquidity provider for major cryptocurrency exchanges, covering leading global platforms such as Coinbase, Binance, and Crypto.com. This market-making giant, valued at hundreds of billions of dollars, aims to replicate its market-making experience accumulated in the stock and fixed income markets in the digital asset space, providing depth and liquidity to the crypto market through continuous bid and ask quotes.

Many market observers believe that one of the direct factors prompting Citadel Securities' determination is the change in the U.S. regulatory environment and policy support. After taking office in 2025, U.S. President Donald Trump adopted a more crypto-friendly policy stance, calling for clearer regulatory rules and promoting legislation to establish a framework for stablecoins and other digital assets. Against this backdrop, Citadel Securities judged that the crypto industry would see policy dividends, with market activity expected to grow significantly.

However, for prudence, Citadel Securities initially plans to set up its crypto market-making team outside the U.S. to avoid uncertainties in local regulations. Once relevant trading licenses are approved, it will gradually expand its operations on major exchanges. In the U.S., Citadel Securities has already participated as an authorized participant for the BlackRock Bitcoin Spot ETF (IBIT), providing liquidity and market-making support for the ETF.

Accelerating Comprehensive Layout in Web3: Stablecoins, Exchanges, and RWA Infrastructure

In addition to directly engaging in trading activities, it is also noteworthy that Citadel Securities made intensive strategic investments in the Web3 and crypto infrastructure sectors in 2025, covering key areas such as stablecoins, centralized exchanges (CEX), and the tokenization of real-world assets (RWA). These investments indicate the company's intention to position itself at critical nodes and build a comprehensive crypto landscape:

Ripple: Stablecoins and Cross-Border Payments

In November 2025, Citadel Securities participated in a $500 million strategic funding round for blockchain payment company Ripple, raising its valuation to $40 billion. Ripple is actively expanding its stablecoin and institutional custody business, launching the USD stablecoin RLUSD to meet cross-border payment and settlement needs. Following the passage of the GENIUS Stablecoin Act in the U.S., compliant stablecoins like RLUSD are increasingly being tested in institutional treasury and collateral scenarios. Ripple stated that this funding will be used to deepen cooperation with large financial institutions and expand its product line, including custody, stablecoins, prime brokerage, and corporate treasury.

Kraken: Centralized Exchange

The established cryptocurrency exchange Kraken secured $800 million in financing in 2025, with Citadel Securities exclusively subscribing to $200 million, resulting in a post-investment valuation of $20 billion. Kraken is known for its compliance and covers areas such as spot trading, futures, tokenized stocks, and payments, planning to accelerate its global expansion with this round of financing.

Citadel Securities President Jim Esposito commented, "Kraken is a key player in the next chapter of digital innovation in the market." Citadel Securities will leverage its expertise in traditional markets to collaborate deeply with Kraken in liquidity provision and risk control, jointly enhancing the trading efficiency and institutional service capabilities of the crypto market.

Canton Network: Privacy-Protection Blockchain

In June 2025, Canton Network developer Digital Asset announced the completion of a $135 million financing round, with investors including Citadel Securities, DRW, Goldman Sachs, and BNP Paribas. This move is interpreted by the industry as a significant signal of traditional financial giants betting on the RWA sector. Canton Network aims to create an open blockchain network with privacy protection, and this financing will be used to accelerate the integration of various real-world assets, such as bonds, money market funds, commodities, repurchase agreements, real estate mortgages, and annuities.

It is worth noting that while actively embracing the crypto world, Citadel Securities has maintained a "clear-headed" approach to compliance boundaries. In July of this year, Citadel Securities submitted a letter to the U.S. SEC's cryptocurrency working group, clearly opposing the provision of securities rule exemptions for tokenized stocks, arguing that such assets could siphon liquidity from traditional markets and confuse investors regarding the issuing entities. Citadel emphasized that while it supports technological innovation, issuing similar securities through regulatory arbitrage is not true innovation.

However, the above large financing transactions indeed indicate that Citadel Securities is placing significant bets on its crypto financial landscape. It is betting on stablecoins and other fiat-pegged assets upstream, building the foundation for digital dollars and payment settlements; investing in well-known exchanges midstream, controlling the pulse of digital asset trading and liquidity; and laying out an on-chain real asset ecosystem downstream, seizing the opportunity for future financial market chain reform.

This series of initiatives complements its plans to engage in crypto market-making in 2025. All signs indicate that Citadel Securities, which once held a skeptical or even hostile attitude towards cryptocurrencies, is now embracing this field in a comprehensive and proactive manner. This is not only a response to market developments and favorable policy winds but also reflects the ambition of this traditional market-making giant to maintain its influence in liquidity provision and market mechanisms in the Web3 era.

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