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Before the official launch of the crypto trading marketplace, Citadel Securities expects more wealth managers and other industry leaders to join the moving train.
Citadel Securities is reportedly partnering with financial services company Virtu Financial (NASDAQ: VIRT) to build a crypto trading marketplace. A source familiar with the matter revealed that the duo is working together to allow retail brokerages to provide crypto-executions to their consumers. Although, the source added that the initiative is still in its early development phase.
Citadel Securities Is Building Crypto Trading Marketplace
According to the source, venture capital firms Paradigm and Sequoia Capital and some other retail brokerages are also involved in the project. Before the official launch of the crypto trading marketplace, Citadel Securities expects more wealth managers and other industry leaders to join the moving train.
The anonymous source confirmed the potential function of the crypto marketplace Citadel Securities is building with the help of Virtu Financial:
“This marketplace is intended to create more efficient access to deep pools of liquidity for digital assets. So a group of industry leaders are working closely together to facilitate the safe, clean, compliant and secure trading of digital assets.”
The source added that the crypto market structure is currently in deficit and hinders the wider adoption from many investors. According to the person, Citadel Securities wants to address the challenge with the coming crypto marketplace. The informant spoke further about the development:
“It’s more of a crypto trading ecosystem or marketplace than an exchange. It’s going to take on the exchanges by building a better mousetrap.”
A separate informant revealed that Citadel Securities had been quietly hiring executives to join the team of crypto trading marketplace. Meanwhile, a third source said it is in talks about “a huge amount of systematic internalizing involving [Citadel’s] sister companies.”
Reports also showed that Fidelity Investment and financial services company Charles Schwab (NYSE: SCHW) are also participants in the project. Schwab confirmed that it made a minority investment in the initiative. The company said in a statement that it recognizes there is “considerable interest in cryptocurrencies… and will consider introducing direct access to cryptocurrencies when there is further regulatory clarity.”
Paradigm and Sequoia Invests in Citadel Securities
In January, Citadel Securities recently got a $1.15 billion investment from Paradigm Capital and Sequoia Capital. The company’s valuation was at roughly $22 billion after the funding. The minority investment pushed Citadel Securities close to crypto as Paradigm has been investing in crypto-related and Web3 firms. After the financial commitment, Paradigm co-founder Matt Huang expressed satisfaction with the investment as Citadel Securities extended its “technology and expertise to even more markets and asset classes, including crypto.”