Citadel Securities, Virtu Financial team up to create crypto ecosystem

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Asset managers Citadel Securities and Virtu Financial are partnering up to create a crypto trading “ecosystem” that will allow retail brokerages to offer crypto-related services to their clients, Reuters reported, citing sources with knowledge of the matter.

According to the report, other notable asset management firms like Sequoia Capital and Paradigm are also part of the consortium behind the new ecosystem.

The project is still in its early stages but has already received financial backing from Fidelity Investments and Charles Schwab Corp.

Schwab commented on the partnership:

“We recognize that there is considerable interest in cryptocurrencies … and will consider introducing direct access to cryptocurrencies when there is further regulatory clarity,”

The project is expected to go live in late 2022 or early 2023.

Similar endeavors

Recently, several brokerages, crypto companies, and traditional banks have been bullish on enabling crypto assets and stock market transactions.

Traditional organizations adding crypto

LGT, the Liechtenstein royal family-owned bank, partnered with a Swiss digital asset provider and started to offer its clients the ability to invest in Bitcoin and Ethereum directly. With the launch of this new feature, the bank became the first ever to provide crypto brokerage services in the region.

Japanese financial services company Nomura Holdings also rolled out Bitcoin derivatives for its institutional clients in May 2022. In the announcement, the firm said they launched this new feature to respond to the demand in the industry.

Crypto companies adding traditional investment tools

European-based crypto exchange Nexo launched a new product in April 2022 to offer brokerage services to its prime customers. Institutional investors, corporations, and high net-worth individuals could trade crypto assets and derivatives instruments from the same platform with the new application.

One of the largest crypto exchange platforms, FTX, recently said they were looking to invest in brokerage start-ups that would help them gain more users and regulatory licenses.

FTX has already applied for a permit to offer crypto and traditional assets within the U.S. The company will be expanding its dual services internationally through acquisitions.

Crypto to integrate with traditional finance

Senator Cynthia Lummis and Kirsten Gillibrand introduced a bill that aimed at fully incorporating crypto-assets into the U.S. financial system on June 7, 2022.

The bill recommends creating a self-regulatory institution that would collaborate with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to manage cryptocurrencies within the existing financial markets.