Citadel, Virtu Join Hands With Schwab and Fidelity on New Crypto Initiative 

A new crypto marketplace backed by leading retail brokerages and market makers is expected to roll out this year or early 2023. According to sources, the new trading platform can provide a major boost to crypto trading for retail investors.

Partnership for New Crypto Initiative

Market makers Citadel Securities and Virtu Financial have joined hands with retail brokerage firms Fidelity Investment and Charles Schwab to build a cryptocurrency trading platform, media reports said.

“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,” a media coverage quoted an unnamed source familiar with Citadel’s plans.

The new trading platform will enable access to a deep pool of liquidity for digital assets, the source added.

Schwab Made Minority Investment

A Schwab spokeswoman did not confirm the development but said the company is engaged with a new crypto initiative.

“Schwab has made a minority, passive strategic investment in a new digital asset venture,” she informed.

Similarly, Fidelity didn’t confirm the development but reaffirmed its commitment to crypto as an asset class. A spokeswoman for the company said, “Fidelity supports efforts that further efficiency in the digital assets marketplace and provide more optionality to source liquidity for investors.”

Fidelity offers exposure to crypto ETFs and has recently made news for plans to provide access to bitcoin investments through 401 (k) personal pension funds.

Direct Crypto Trading Unlikely

Among the digital asset products it provides to its investors, Schwab offers Bitcoin futures and over-the-counter products of crypto-oriented trusts. However, it’s unlikely for the new trading platform to offer direct crypto trading until a more clear regulatory environment is available.

“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,” the Schwab spokeswoman said.

In October 2021, Citadel’s Founder and CEO Ken Griffin said in an interview that his organization can start crypto trading services if there is regulatory clarity.