Author: Zen, PANews In mid-November, cryptocurrency exchange Kraken announced the completion of two funding rounds totaling $800 million, bringing its latest valuation to $20 billion. In the second round of funding, Citadel Securities, one of the world's largest market makers, directly invested $200 million as a strategic investor, joining Jane Street, DRW, and other institutions on the shareholder list. Another major funding round this month saw blockchain payment company Ripple secure $500 million in strategic investment, bringing its latest valuation to $40 billion. Citadel Securities also led the round. Additionally, Canton Network, a privacy-focused RWA blockchain, completed a $135 million funding round in June, with Citadel Securities again among the investors. From avoiding the issue altogether, to launching the institutional exchange EDX Markets in partnership, and then preparing to provide liquidity on leading platforms and making deep bets on stablecoin companies and the RWA public chain, Citadel Securities has completely reversed its attitude towards crypto assets in less than three years. A Shift in Stance: From a "Holy War" Against the Dollar to Testing the Waters Over the past few years, Citadel Securities’ attitude toward cryptocurrencies has undergone a significant shift. In 2021, Ken Griffin, founder of Citadel Securities, bluntly stated that his company had been avoiding crypto trading due to regulatory uncertainty, comparing the crypto frenzy to a "holy war" against the US dollar. At the time, Griffin believed that the lack of clear regulation made the crypto market too risky, and he was unwilling to venture into the regulatory vacuum. During that period, traditional financial giants were generally wary of the crypto space, and such strong statements were quite common. However, in 2022, Griffin softened his stance, publicly admitting he had misjudged the market. He pointed out that the total market capitalization of the crypto market had reached approximately $2 trillion, stating that this fact proved his judgment incorrect. With changing client and market demands, Griffin indicated that Citadel Securities had seriously considered becoming a market maker in the crypto market. This change of attitude was the final step for Citadel Securities, which soon officially entered the cryptocurrency industry. In September 2022, EDX Markets (EDXM), an institutional-grade cryptocurrency exchange, was established through a collaboration between Citadel Securities, Fidelity, Charles Schwab, and other brokerage firms, global market makers, and venture capital firms. EDXM's CEO was Jamil Nazarali, the former head of global business development at Citadel Securities, who later became executive chairman in late 2024. After nine months of technical refinement, EDXM officially launched in the United States in June 2023. It adopts a differentiated operating model: it does not hold client assets in custody, but instead clears trades through independent brokers, initially offering trading in only four major cryptocurrencies: Bitcoin, Ethereum, and Litecoin. This non-custodial, limited-asset model aligns with regulatory requirements for the separation of exchange and brokerage functions, and also reflects the cautious approach of traditional institutions like Citadel in venturing into crypto. Preparing to enter the encrypted market making business If EDX Markets was merely an important transitional attempt by Citadel Securities from being hostile to crypto to participating in its development, then it was only in 2025, with a more favorable macroeconomic environment and regulatory climate, that Citadel Securities truly began to make its mark in the cryptocurrency field. In the first half of this year, Citadel Securities announced plans to become a liquidity provider for major cryptocurrency exchanges, including global leaders such as Coinbase, Binance, and Crypto.com. This market-making giant, with a market capitalization of tens of billions of dollars, hopes to replicate its market-making experience accumulated in the stock and fixed-income markets in the digital asset space, providing depth and liquidity to the crypto market by continuously providing buy and sell quotes. Many market observers believe that one of the direct factors prompting Citadel Securities to make its decision was the changing regulatory environment and policy support in the United States. After taking office in 2025, US President Donald Trump adopted a more crypto-friendly policy stance, not only calling for clearer regulatory rules but also pushing for legislation to establish a framework for digital assets such as stablecoins. Against this backdrop, Citadel Securities judged that the crypto industry would experience policy dividends, and market activity was expected to increase significantly. However, for the sake of stability, Citadel Securities initially plans to keep its crypto market-making team located outside the United States to avoid uncertainties related to domestic regulations. Once the relevant trading licenses are approved, it will gradually expand its full-scale operations on major exchanges. Within the United States, Citadel Securities is already an authorized participant in the BlackRock Bitcoin Spot ETF (IBIT), providing liquidity and market-making support for the ETF. Accelerating the comprehensive deployment of Web3: stablecoins, exchanges, and RWA infrastructure Beyond directly engaging in trading, it's also worth noting that Citadel Securities made significant strategic investments in Web3 and crypto infrastructure in 2025, covering key sectors such as stablecoins, centralized exchanges (CEXs), and real-world asset tokenization (RWA). These investments indicate the company's intention to secure key positions and build a comprehensive crypto footprint. Ripple: Stablecoins and Cross-border Payments In November 2025, Citadel Securities participated in a $500 million strategic funding round for blockchain payment company Ripple, bringing the latter's valuation to $40 billion. Ripple is actively expanding its stablecoin and institutional custody businesses and has launched the USD stablecoin RLUSD to meet cross-border payment and settlement needs. Following the passage of the GENIUS Stablecoin Act in the United States, compliant stablecoins such as RLUSD have seen increasing use in institutional treasury and collateralized scenarios. Ripple stated that this funding will be used to deepen its cooperation with large financial institutions and expand its product line, including custody, stablecoins, prime brokerage, and corporate treasury. Kraken: Centralized Exchange Kraken, a long-established cryptocurrency exchange, raised $800 million in 2025, with Citadel Securities exclusively subscribing for $200 million, valuing the company at $20 billion post-money. Known for its compliance practices, Kraken's business encompasses spot trading, futures, tokenized stocks, and payments, and it plans to use this funding round to accelerate its global expansion. Jim Esposito, President of Citadel Securities, commented, "Kraken is a key player in the next chapter of digital innovation in the market." Citadel Securities will leverage its expertise in traditional markets to collaborate deeply with Kraken in areas such as liquidity provision and risk control, jointly enhancing trading efficiency and institutional services capabilities in the crypto market. Canton Network: Privacy-Preserving Blockchain In June 2025, Digital Asset, the developer of Canton Network, announced the completion of a $135 million funding round, with investors including Wall Street institutions such as Citadel Securities, DRW, Goldman Sachs, and BNP Paribas. This move was interpreted by the industry as a significant signal of traditional financial giants betting on the RWA (Real-World Asset Management) space. Canton Network aims to build an open blockchain network with privacy protection, and this funding will be used to accelerate the integration of various real-world assets, such as bonds, money market funds, commodities, bulk repurchase agreements, mortgage loans, and annuities. It's worth noting that while actively embracing the crypto world, Citadel Securities remains "sober-minded" about the boundaries of compliance. In July of this year, Citadel Securities submitted a letter to the U.S. SEC's Cryptocurrency Working Group, explicitly opposing granting securities rule exemptions to tokenized stocks, arguing that such assets could divert liquidity from traditional markets and cause investor confusion regarding the issuers. Citadel emphasized that while supporting technological innovation, issuing similar securities through regulatory arbitrage is not genuine innovation. However, the large-scale financing transactions mentioned above do indeed demonstrate that Citadel Securities is heavily betting on its crypto-finance empire. Upstream, it's investing in fiat-pegged assets such as stablecoins to build the foundation for a digital dollar and payment clearing; midstream, it's acquiring stakes in well-known exchanges to control the pulse of digital asset trading and liquidity; and downstream, it's developing an on-chain physical asset ecosystem to seize the initiative in the future transformation of the financial market through blockchain technology. These moves complement Citadel Securities' plan to launch a crypto market-making business in 2025. All indications suggest that Citadel Securities, once skeptical or even hostile towards cryptocurrencies, is embracing the field in a comprehensive and proactive manner. This reflects both a response to market developments and favorable policy environment, and also demonstrates the ambition of this traditional market-making giant to maintain its influence in liquidity provision and market mechanisms in the Web3 era. Author: Zen, PANews In mid-November, cryptocurrency exchange Kraken announced the completion of two funding rounds totaling $800 million, bringing its latest valuation to $20 billion. In the second round of funding, Citadel Securities, one of the world's largest market makers, directly invested $200 million as a strategic investor, joining Jane Street, DRW, and other institutions on the shareholder list. Another major funding round this month saw blockchain payment company Ripple secure $500 million in strategic investment, bringing its latest valuation to $40 billion. Citadel Securities also led the round. Additionally, Canton Network, a privacy-focused RWA blockchain, completed a $135 million funding round in June, with Citadel Securities again among the investors. From avoiding the issue altogether, to launching the institutional exchange EDX Markets in partnership, and then preparing to provide liquidity on leading platforms and making deep bets on stablecoin companies and the RWA public chain, Citadel Securities has completely reversed its attitude towards crypto assets in less than three years. A Shift in Stance: From a "Holy War" Against the Dollar to Testing the Waters Over the past few years, Citadel Securities’ attitude toward cryptocurrencies has undergone a significant shift. In 2021, Ken Griffin, founder of Citadel Securities, bluntly stated that his company had been avoiding crypto trading due to regulatory uncertainty, comparing the crypto frenzy to a "holy war" against the US dollar. At the time, Griffin believed that the lack of clear regulation made the crypto market too risky, and he was unwilling to venture into the regulatory vacuum. During that period, traditional financial giants were generally wary of the crypto space, and such strong statements were quite common. However, in 2022, Griffin softened his stance, publicly admitting he had misjudged the market. He pointed out that the total market capitalization of the crypto market had reached approximately $2 trillion, stating that this fact proved his judgment incorrect. With changing client and market demands, Griffin indicated that Citadel Securities had seriously considered becoming a market maker in the crypto market. This change of attitude was the final step for Citadel Securities, which soon officially entered the cryptocurrency industry. In September 2022, EDX Markets (EDXM), an institutional-grade cryptocurrency exchange, was established through a collaboration between Citadel Securities, Fidelity, Charles Schwab, and other brokerage firms, global market makers, and venture capital firms. EDXM's CEO was Jamil Nazarali, the former head of global business development at Citadel Securities, who later became executive chairman in late 2024. After nine months of technical refinement, EDXM officially launched in the United States in June 2023. It adopts a differentiated operating model: it does not hold client assets in custody, but instead clears trades through independent brokers, initially offering trading in only four major cryptocurrencies: Bitcoin, Ethereum, and Litecoin. This non-custodial, limited-asset model aligns with regulatory requirements for the separation of exchange and brokerage functions, and also reflects the cautious approach of traditional institutions like Citadel in venturing into crypto. Preparing to enter the encrypted market making business If EDX Markets was merely an important transitional attempt by Citadel Securities from being hostile to crypto to participating in its development, then it was only in 2025, with a more favorable macroeconomic environment and regulatory climate, that Citadel Securities truly began to make its mark in the cryptocurrency field. In the first half of this year, Citadel Securities announced plans to become a liquidity provider for major cryptocurrency exchanges, including global leaders such as Coinbase, Binance, and Crypto.com. This market-making giant, with a market capitalization of tens of billions of dollars, hopes to replicate its market-making experience accumulated in the stock and fixed-income markets in the digital asset space, providing depth and liquidity to the crypto market by continuously providing buy and sell quotes. Many market observers believe that one of the direct factors prompting Citadel Securities to make its decision was the changing regulatory environment and policy support in the United States. After taking office in 2025, US President Donald Trump adopted a more crypto-friendly policy stance, not only calling for clearer regulatory rules but also pushing for legislation to establish a framework for digital assets such as stablecoins. Against this backdrop, Citadel Securities judged that the crypto industry would experience policy dividends, and market activity was expected to increase significantly. However, for the sake of stability, Citadel Securities initially plans to keep its crypto market-making team located outside the United States to avoid uncertainties related to domestic regulations. Once the relevant trading licenses are approved, it will gradually expand its full-scale operations on major exchanges. Within the United States, Citadel Securities is already an authorized participant in the BlackRock Bitcoin Spot ETF (IBIT), providing liquidity and market-making support for the ETF. Accelerating the comprehensive deployment of Web3: stablecoins, exchanges, and RWA infrastructure Beyond directly engaging in trading, it's also worth noting that Citadel Securities made significant strategic investments in Web3 and crypto infrastructure in 2025, covering key sectors such as stablecoins, centralized exchanges (CEXs), and real-world asset tokenization (RWA). These investments indicate the company's intention to secure key positions and build a comprehensive crypto footprint. Ripple: Stablecoins and Cross-border Payments In November 2025, Citadel Securities participated in a $500 million strategic funding round for blockchain payment company Ripple, bringing the latter's valuation to $40 billion. Ripple is actively expanding its stablecoin and institutional custody businesses and has launched the USD stablecoin RLUSD to meet cross-border payment and settlement needs. Following the passage of the GENIUS Stablecoin Act in the United States, compliant stablecoins such as RLUSD have seen increasing use in institutional treasury and collateralized scenarios. Ripple stated that this funding will be used to deepen its cooperation with large financial institutions and expand its product line, including custody, stablecoins, prime brokerage, and corporate treasury. Kraken: Centralized Exchange Kraken, a long-established cryptocurrency exchange, raised $800 million in 2025, with Citadel Securities exclusively subscribing for $200 million, valuing the company at $20 billion post-money. Known for its compliance practices, Kraken's business encompasses spot trading, futures, tokenized stocks, and payments, and it plans to use this funding round to accelerate its global expansion. Jim Esposito, President of Citadel Securities, commented, "Kraken is a key player in the next chapter of digital innovation in the market." Citadel Securities will leverage its expertise in traditional markets to collaborate deeply with Kraken in areas such as liquidity provision and risk control, jointly enhancing trading efficiency and institutional services capabilities in the crypto market. Canton Network: Privacy-Preserving Blockchain In June 2025, Digital Asset, the developer of Canton Network, announced the completion of a $135 million funding round, with investors including Wall Street institutions such as Citadel Securities, DRW, Goldman Sachs, and BNP Paribas. This move was interpreted by the industry as a significant signal of traditional financial giants betting on the RWA (Real-World Asset Management) space. Canton Network aims to build an open blockchain network with privacy protection, and this funding will be used to accelerate the integration of various real-world assets, such as bonds, money market funds, commodities, bulk repurchase agreements, mortgage loans, and annuities. It's worth noting that while actively embracing the crypto world, Citadel Securities remains "sober-minded" about the boundaries of compliance. In July of this year, Citadel Securities submitted a letter to the U.S. SEC's Cryptocurrency Working Group, explicitly opposing granting securities rule exemptions to tokenized stocks, arguing that such assets could divert liquidity from traditional markets and cause investor confusion regarding the issuers. Citadel emphasized that while supporting technological innovation, issuing similar securities through regulatory arbitrage is not genuine innovation. However, the large-scale financing transactions mentioned above do indeed demonstrate that Citadel Securities is heavily betting on its crypto-finance empire. Upstream, it's investing in fiat-pegged assets such as stablecoins to build the foundation for a digital dollar and payment clearing; midstream, it's acquiring stakes in well-known exchanges to control the pulse of digital asset trading and liquidity; and downstream, it's developing an on-chain physical asset ecosystem to seize the initiative in the future transformation of the financial market through blockchain technology. These moves complement Citadel Securities' plan to launch a crypto market-making business in 2025. All indications suggest that Citadel Securities, once skeptical or even hostile towards cryptocurrencies, is embracing the field in a comprehensive and proactive manner. This reflects both a response to market developments and favorable policy environment, and also demonstrates the ambition of this traditional market-making giant to maintain its influence in liquidity provision and market mechanisms in the Web3 era.