Citadel Securities invested $400 million in crypto exchange Crypto.com at a $20 billion valuation, according to a Thursday announcement. The Singapore-based platform will use the funds to expand services into blockchain-based securities and derivatives. The investment reflects growing Wall Street interest in bridging digital asset and traditional financial markets to create a 24/7 financial ecosystem.
Citadel Securities Invests $400M in Crypto.com at $20B Valuation
Crypto.com said the cash will help bridge the gap "between digital asset and traditional markets to create a more efficient 24/7 financial ecosystem," according to the Thursday announcement. CEO Kris Marszalek stated, "The size of the opportunity in front of us is staggering, as crypto increasingly becomes the rails for finance. Having built the right regulatory and tech infrastructure over the last decade, Crypto.com is now perfectly positioned to capture this new wave of growth across all asset classes."
Jim Esposito, President of Citadel Securities, added, "The convergence of traditional financial markets and digital asset infrastructure is an exciting evolution with the potential to further improve market efficiency." Marszalek posted on social media that this marks Crypto.com's first institutional funding round and "the beginning of a new phase of growth."
Wall Street Firms Pursue Blockchain-Based Tokenization Projects
In February, BlackRock announced it was working with decentralized exchange Uniswap to bring one of its funds on-chain. In January, the New York Stock Exchange said it was building a platform allowing traders to buy and sell tokenized versions of US-listed equities and exchange-traded funds. The S&P 500 gave crypto platform Trade[XYZ] the green light to debut a new derivative contract on decentralized exchange Hyperliquid, allowing traders to gain leveraged exposure to the top index.
Citadel Securities Expands Crypto Portfolio with EDX Markets and Kraken
In 2023, Miami, Florida-based Citadel Securities helped debut EDX Markets, described as a "first-of-its-kind exchange" giving investors "safer, faster and more efficient cryptocurrency trading." EDX Markets this year applied for a national trust bank charter with the Office of the Comptroller of the Currency. Last year, Citadel Securities pumped $200 million into crypto exchange Kraken to help accelerate the company's strategy of bringing traditional financial products on-chain.
FAQ
What did Citadel Securities invest in Crypto.com?
Citadel Securities invested $400 million in Crypto.com at a $20 billion valuation, according to a Thursday announcement.
Why did Crypto.com receive the investment from Citadel Securities?
Crypto.com will use the funds to expand its services to assets such as blockchain-based securities and derivatives, bridging the gap between digital asset and traditional markets.
What other crypto investments has Citadel Securities made?
In 2023, Citadel Securities helped launch EDX Markets, a cryptocurrency exchange. Last year, the company invested $200 million in crypto exchange Kraken.
