Schwab and Fidelity Developing Crypto Platform With Market Makers

Market makers Citadel Securities and Virtu Financial are reportedly working with Fidelity and Charles Schwab to develop a crypto trading platform. The platform is expected to roll out later this year or early 2023, according to Bloomberg’s anonymous sources.

A source familiar with Citadel’s plans said in a recent interview that “Citadel Securities and other industry leaders are working closely together to create a crypto marketplace that is efficient, transparent, and secure, with agreed upon standards and best practices.”

The source added that the “new trading ecosystem will create more efficient access to deep pools of liquidity for digital assets.”

A spokeswoman for Fidelity refused to confirm that it is participating in the venture, but did reaffirm the company’s commitment to crypto, stating that “Fidelity supports efforts that further efficiency in the digital assets marketplace and provide more optionality to source liquidity for investors.”

Schwab says that there are no immediate plans to offer customers direct crypto trading because the company is waiting to see how policymakers decide to regulate the crypto sector.

The Schwab spokeswoman stated, “We recognize that there is considerable interest in cryptocurrencies, particularly in certain segments of the market, and will consider introducing direct access to cryptocurrencies when there is further regulatory clarity.”

Even though there are very few details about the new venture, it could be a major step towards mainstreaming crypto retail trading. The current crypto market only allows investors to purchase cryptos from either dedicated exchanges or brokerage apps such as Robinhood or Webull.