Virtu Financial and Citadel Securities, along with Charles Schwab Corp. and Fidelity Investments, are building a trading platform for Cryptocurrency.
What’s more?
As per Bloomberg News, the market makers are taking the help of Schwab and Fidelity to develop a crypto platform that would allow increased access to digital assets. According to people familiar with the matter who did not wish to be named, the crypto product is still in the early stages of development. According to people familiar with the matter who did not want to be named, it could be offered later this year or next year.
Virtu and Citadel Securities representatives declined to comment.
Citadel Securities and Virtu financials, dominant players in ETFs and equities, will make their first big foray into the crypto market. Other market-making players, such as Jane Street and Jump Trading, are already active in crypto with trading capabilities and venture investments.
Fidelity Spokeswoman Susan Coburn said that the brokerage firm would support the effort to provide liquidity to the clients within the industry.
According to an email from their Spokeswoman Mayuri Hooper, Schwab has invested in the new digital asset venture with a minority and passive strategic investment. She said that they are aware of significant interest in the cryptocurrency space. They are looking to invest in technologies and firms that offer a healthy and secure environment with regulatory compliances.
The brokerage firm does intend to offer direct trading in crypto at the moment but will consider direct access to crypto assets when there is clarity from the regulatory authorities.
According to people, plans can change based on future market conditions and the regulatory landscape.
CoinDesk had earlier reported on the Aspects of Virtu Financials and Citadel Securities. Investors who buy crypto use crypto exchanges like Coinbase Global inc. or FTX Trading or brokerage apps such as Robinhood Markets Inc.
Ken Griffin, the founder of Citadel Securities, said that the company plans to make markets in crypto without giving a specific timeline.
Fidelity had earlier said that the product would be ready in the coming months and allow its 401(k) plan investors to divert a portion of their savings into Bitcoin. The brokerage form entered the crypto market in 2018 through its subsidiary Fidelity Digital Assets, which allows customers like family offices, institutions, and hedge funds to trade and store digital currencies.
Walt Bettinger, the chief executive officer of Schwab, also expressed interest in Cryptocurrency. In an interview in January, he said that it was hard to ignore them, and there is a tremendous void in that space for Schwab.
