Citadel Securities, Virtu Financial, and Sequoia Capital join forces to build crypto trading ecosystem for retail brokerages
Trading giant Citadel Securities is building a “cryptocurrency trading ecosystem” in collaboration with high-frequency trading and market-making firm Virtu Financial. The new crypto trading marketplace will enable retail brokerages to offer crypto-executions to their customers, CoinDesk reported, citing a source with direct knowledge of the matter.
According to CoinDesk, the project, which is still very early in its development, is also backed by a consortium of firms including prominent venture capital firms Sequoia Capital and Paradigm. Citadel Securities is the sister company to hedge fund giant Citadel.
The source added that the four firms in Citadel Securities’ initial consortium will also be joined by additional wealth managers, market makers, and other industry leaders. They are expected to join the marketplace ahead of launch.
“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 told CoinDesk.
The goal of the Citadel Securities’ trading consortium is to address the deficiency in the current crypto market structure, which inhibits wider adoption from a lot of investors, the source told CoinDesk.
“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.”