A quartet of financial giants consisting of market makers Citadel Securities and Virtu Financial Inc. and retail brokers Fidelity Investments and Charles Schwab Corp are developing a cryptocurrency trading platform, according to a report from Bloomberg.
Citadel and Virtu are developing the offering which will include bitcoin and other cryptocurrencies. Fidelity and Charles Swab will assist the process through existing infrastructure that will allow the product to reach mass appeal.
This marks the first actualization of becoming immersed into the bitcoin ecosystem for Citadel and Virtu which have traditionally led the world of equities and exchange traded funds (ETFs). Citadel Securities is a subsidiary of Citadel LP, which currently has hedge fund billionaire Ken Griffin at the helm who, just last year, referred to bitcoin and other cryptocurrencies as “a jihadist call” against the U.S dollar.
Conversely, Fidelity has already entered the space with Bitcoin First, a publication explaining why investors should always invest in bitcoin before any other digital asset, as well as offering a 401(k) plan that is bitcoin-accessible.
Similarly, Charles Schwab entered the space enabling investors to purchase bitcoin futures contracts. The brokerage company reportedly “has made a minority, passive strategic investment in a new digital asset venture,” according to spokeswoman Mayura Hooper.
Hooper continued to say “We know there is significant interest in this cryptocurrency space and we will look to invest in firms and technologies working to offer access with a strong regulatory focus and in a secure environment.”
Hooper elaborated that the company had no near intentions of offering direct bitcoin trading at this time, but noted the company “will consider introducing direct access to cryptocurrencies when there is further regulatory clarity.”