A new crypto marketplace backed by major retail brokerages and market makers is expected to launch this year or early 2023. According to sources, the new trading platform could give a big boost to crypto trading for retail investors.
Partnership for New Crypto Initiatives
Market makers Citadel Securities and Virtu Financial have joined hands with retail brokerage firms Fidelity Investments and Charles Schwab to build a cryptocurrency trading platform, media reports said.
A media coverage quoting an unnamed source familiar with Citadel’s plans said, “Citadel Securities and other industry leaders are working together to build a crypto marketplace that is efficient, transparent and secure, based on standards and best practices.” agree.”
The new trading platform will enable access to a deeper pool of liquidity for digital assets, the source said.
Schwab Made Minority Investment
A Schwab spokesperson did not confirm the development, but said that the company is engaged with a new crypto initiative.
“Schwab has made a minority, passive strategic investment in a new digital asset venture,” he explained.
Similarly, Fidelity did not confirm the development, but reaffirmed its commitment to crypto as an asset class. A spokesperson for the company said, “Fidelity supports efforts that provide greater efficiencies in the digital asset market and provide investors with more options for sources of liquidity.”
Fidelity offers exposure to crypto ETFs and has recently made news for plans to offer access to bitcoin investments through a 401(k) individual pension fund.
Direct crypto trading unlikely
Among the digital asset products it offers to its investors, Schwab offers over-the-counter products of bitcoin futures and crypto-oriented trusts. However, it is 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 from certain segments of the market, and will consider introducing direct access to cryptocurrencies when there is further regulatory clarity,” a Schwab spokesperson said.
In October 2021, Citadel founder and CEO Ken Griffin said in an interview that his organization could launch crypto trading services if there is regulatory clarity.
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