Market makers Citadel Securities and Virtu Financial are reported to be building a cryptocurrency trading platform, with sources close to the matter stating it could be available later this year.
According to sources cited by Bloomberg, the two market makers are set to develop the cryptocurrency trading platform with assistance from retail brokerage firms Fidelity Investments and Charles Schwab.
A spokesperson for Schwab noted:
“We know there is significant interest in this cryptocurrency space and we will look to invest in firms and technologies working to offer access with a strong regulatory focus and in a secure environment.”
In the interview with Bloomberg, the source noted that the cryptocurrency trading platform is still in its nascence, with the platform expected to roll out towards the end of 2022 or early 2023.
The source close to the plans noted that the “new trading ecosystem will create more efficient access to deep pools of liquidity for digital assets.”
While a spokesperson for Fidelity did not confirm Fidelity’s participation in the reported platform, she did reiterate the company’s commitment to its cryptocurrency business. The digital assets subsidiary, Fidelity Digital Assets, also recently revealed it would be expanding its services, with a Fidelity executive explaining:
“As the demand for digital assets continues to steadily grow and the marketplace evolves, we will continue to expand our hiring efforts,”
In March Citadel co-founder Ken Griffin had a change of heart about the crypto space, admitting he was wrong about cryptocurrencies and stating that his firm Citadel would be engaging in the crypto market in 2022.
The creation of a cryptocurrency trading platform by the market makers would be a symbolic step for the adoption of cryptocurrency, and while the cryptocurrency market has experienced a significant downturn over the past few months, continued institutional adoption of the sector bodes well for its future.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.