Venture Capital firms Paradigm Capital and Sequoia Capital are to invest $1.15 billion into stock trading giant Citadel Securities, leading many to suspect Citadel’s foray into crypto may be imminent.
Citadel Securities announced the 1.15 billion investment from Sequoia and Paradigm on Tuesday, with the global Market Maker now valued at $22 billion following the outside investment from the VC firms.
CEO of Citadel, Peng Zhao, said that the company would use the funds to grow internationally, with Matt Huang, the co-founder of Paradigm noting how Paradigm’s investment into Citadel Securities will include the exploration of new asset classes including cryptocurrencies.
“Excited to announce @Paradigm’s investment in Citadel Securities alongside our friends at Sequoia. We’re excited to partner with them as they extend their technology and expertise into more markets and asset classes including crypto”
This marks the first outside investment for Citadel since it was founded in 2001. The investment from Sequoia Capital and crypto VC firm Paradigm, is a strong indication of Citadel Securities expansion into crypto, despite CEO and Hedge fund billionaire Ken Griffin having shared his negative views of cryptocurrencies in the past:
“I wish all this passion and energy that went to crypto was directed towards making the United States stronger...It’s a jihadist call that we don’t believe in the dollar. What a crazy concept this is, that we as a country embrace so many bright, young, talented people to come up with a replacement for our reserve currency.”
However, Griffin maintained that once regulators lay out clear rules, Citadel would begin to trade cryptocurrencies. In the latest announcement, Griffin noted
“The talent of our extraordinary market making team combined with our powerful risk management techniques have transformed the client experience in the many markets we serve,” said Citadel Securities Chairman Ken Griffin. “In Sequoia and Paradigm, we have partners that appreciate how the strength of our market expertise, advanced predictive analytics and superlative software engineering can redefine an industry. We look forward to their partnership and to welcoming Alfred to our Board as Citadel Securities accelerates its growth.”
With institutional involvement with crypto on a steady rise, stock trading giants such as Citadel Securities will be keen to move with the momentum in order to maintain and grow their expertise in the changing financial market.
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