CITADEL SECURITIES FIRM IS WORKING WITH VIRTU FINANCIAL TO BUILD ITS CRYPTO PLATFORM
An American marketing firm founded by billionaire hedge fund manager Ken Griffin created a cryptocurrency trading platform in partnership with high-level trading firm Virtu Financial.
Citadel Securities is a sister company that will protect the massive Citadel fund. It also works with crypto venture capital companies Sequoia Capital and Paradigm, according to reports citing unnamed sources on June 8. Sequoia and Paradigm contributed to Citadel Securities' $ 1.15 billion funding earlier this year.
A new “cryptocurrency trading ecosystem” system will be designed to create effective access to crypto asset liquidity for institutional traders. The company seems unconcerned with the depth of the bear market in the crypto sector, which has seen the market price drop by almost 60% since November 2021.
You are not afraid of Bears
There has been a remarkable interest in the asset class from financial institutions during the last bull market. They usually plan for a long-term recovery, so it is unlikely that they will be blocked by the current crypto market conditions, which have occurred several times before. If available, bear markets allow significant profit opportunities when investing in stocks at depressed prices.
According to a source, who spoke to Coindesk, the Citadel consortium will be joined by additional asset managers, market makers, and industry leaders who are expected to be part of the platform before launch. They did not specify a time for launch, however.
The source added that the current structure of the crypto market is "insufficient and prevents widespread discovery for many investors" before further elaborating:
“It is a platform for crypto trading or market rather than exchange. It will deal with trade by creating a better rat trap. "
The company also hires managers to build a crypto stack in a quiet environment.
Virtu Financial is a market maker of crypto derivatives products and trading platforms (ETFs) in Canada. According to reports, it also operates close to Coinbase and Gemini exchanges.
Billionaire Opens Crypto
Griffin compared Bitcoin to the Tulip Bulb mania in 2017 when the stock was trading for about $ 10,000. However, the millionaire made a U-turn to his case regarding crypto assets, recently telling Bloomberg in March that he was making the wrong call by being a naysayer. At that time, he said:
"Crypto has been one of the best, most financially sound news over the last 15 years and, to be clear, I've been in a naysayer camp for the past 15 years," he said.
In November 2021, Griffin proposed Ethereum (ETH) properties, stating that network-based assets would eventually replace Bitcoin (BTC) due to high transaction speed, low costs, and very low environmental impact.