Citadel Securities has invested $400 million in Crypto.com, valuing the cryptocurrency exchange at $20 billion in its first institutional funding round since its founding in 2016. The deal, announced Thursday, marks a significant milestone as traditional finance deepens its ties with digital asset platforms.
The Singapore-based exchange said the capital will accelerate its expansion into tokenized securities, derivatives and other asset classes, as it builds around-the-clock trading infrastructure to bridge traditional and digital markets. The investment comes amid a broader shift where Wall Street firms are ramping up crypto exposure following the launch of spot bitcoin ETFs in January 2024, with institutional investors boosting planned allocations, according to EY research.
Strategic investment signals convergence of TradFi and crypto
Citadel Securities, a major market maker, is backing Crypto.com as the exchange seeks to capture what CEO Kris Marszalek called a "staggering" opportunity as crypto becomes the rails for finance. The funding will support new offerings in prediction markets and tokenized real-world assets (RWAs), the company said.
Founded in 2016, Crypto.com has grown into one of the largest crypto platforms globally, expanding from retail into institutional products. The deal reflects a trend of traditional finance firms investing in crypto infrastructure, with other recent moves including T. Rowe Price launching a multi-token crypto ETF and Visa backing a new stablecoin platform.
Broader context
The investment follows Citadel's decision to abandon a multi-year crypto lawsuit to focus on a bankruptcy order against a former employee, signaling a strategic pivot toward constructive engagement with the digital asset sector. As tokenization and derivatives gain traction, Crypto.com aims to position itself at the center of the convergence between crypto and traditional finance.