Wall Street financial giant Citadel Securities is planning to enter the Bit cryptocurrency trading sector, becoming a market maker for large exchanges such as Coinbase and Binance. Although the company still has doubts about the utility of Bit, it has expressed regret at not being able to participate in the market earlier.
(Citadel and BlackRock jointly invest in the Texas Stock Exchange, vying for the ETP market)
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ToggleFrom Doubt to Acceptance: Griffin's Shift in Crypto Stance
Bloomberg reports that Ken Griffin, the CEO of Citadel Securities, the largest designated market maker on the New York Stock Exchange, recently revealed at the UBS Global Financial Services Conference in Key Biscayne, Florida, that the company intends to enter the Bit sector and called on US President Trump and his administration to provide clearer regulatory guidance on Bit.
Griffin previously held a reserved attitude towards Bit, referring to Bit as a "jihadist call" against the US dollar in 2021 and questioning its economic foundations. However, as the Bit market has grown rapidly globally, he has gradually softened his stance.
In 2022, a few weeks before the collapse of the algorithmic stablecoin protocol Terra, Griffin stated that Citadel might enter the Bit sector in the coming months, acknowledging that the recognition of Bit by billions of people has forced him to reconsider. However, the subsequent market crisis seems to have temporarily delayed his actions.
Recently, he has expressed regret at not being able to participate earlier, and on the day Bit first broke through $100,000, he told The New York Times:
The rise of Bit reflects the trend of Americans seeking "self-sovereignty" after Trump's election.
Entering the Market Making: Targeting Exchanges like Coinbase
Citadel has revealed plans to become a market maker for Bit exchanges, providing liquidity and stabilizing market trading, and has currently identified Coinbase, Binance, and Crypto.com as potential cooperation targets.
Initially, Citadel plans to set up a market-making team outside the US to avoid the current uncertainty in the US regulatory environment.
At the conference, Griffin emphasized that when the market allows top participants to enter, it often clears up uncertainty and enhances stability:
We have repeatedly seen that when top players decide to participate, the market becomes cleaner; I hope to see this happen in the Bit sector, and this requires very good regulatory guidance.
Regulatory Clarity as the Key: Trump's Crypto-Friendly Prospects
On the other hand, Griffin also criticized the Biden administration's "evil" "enforcement-as-regulation" approach, and praised Trump's crypto-friendly stance and Musk's idea of using DOGE blockchain technology in the government efficiency department.
He believes that if the Trump administration can establish a clear regulatory framework, it will help reduce fraud risk and attract more banks and asset management companies to enter this field. Trump's recent actions, such as signing an executive order to revoke the previous Bit framework, opposing central bank digital currencies (CBDCs), and establishing a working group to develop regulatory standards, have further bolstered Griffin's confidence.
Griffin Still Has Doubts: The Utility of Bit
Although Griffin is currently showing new interest in the Bit market, he still has doubts about its core value. Last December, he stated:
What I don't like about Bit is, what problem does it really solve for our economy?
However, he also emphasized that as a service provider and investor company, Citadel must seriously consider how to assist clients with asset allocation, which is one of the main reasons driving its entry into the Bit market.
Citadel's plan to enter the Bit market as a market maker reflects not only Griffin's personal shift in stance, but also the growing acceptance of digital assets by traditional finance. Against the backdrop of regulatory reforms pushed by the Trump administration, this move will inject more liquidity into the market and is more likely to pave the way for other institutions.
Risk Warning
Bit investment is highly risky, and its price may fluctuate dramatically, and you may lose your entire principal. Please carefully evaluate the risks.
