Citadel Securities invests $400 million in Crypto.com as tokenization grows

Citadel Securities invested $400 million into Crypto.com at a $20 billion valuation on July 16, the exchange's first outside capital in a decade, as the market maker moves to secure infrastructure for trading tokenized securities.

The investment is aimed at supporting Crypto.com's features for trading tokenized stocks and financial derivatives, the companies said. It marks Citadel's third large crypto bet in eight months, following a $200 million stake in Kraken in November and a $500 million Ripple fundraise led by its affiliates at a $40 billion valuation.

Ethereum hosts the largest base of tokenized assets, with its tradeable footprint worth $17.2 billion as of July 31, up from $12.5 billion a year ago. Solana's tokenized base grew to about $3.6 billion from $602.2 million, excelling in tokenized stocks, while XRP's smaller base carries a fast-growing slice of tokenized Treasuries.

Deeper markets could lower friction for institutional investors building positions, potentially drawing more capital into the sector than Citadel can deploy itself. But Crypto.com runs its own blockchain, Cronos, pitched as a settlement layer for tokenized assets, meaning the products Citadel's money funds may be issued on Cronos rather than Ethereum, Solana, or XRP.

What the deal means for major tokens

If Citadel begins market-making on Crypto.com's order books, it could tighten spreads on derivatives such as futures contracts traded there. That would lower the cost of building large positions, a key concern for institutions.

Crypto.com serves more than 150 million users worldwide and generated $1.5 billion in revenue in 2024. At $20 billion, the exchange is valued at about 12 times trailing sales, compared with Coinbase's price-to-sales ratio of 8.5. The valuation mirrors Citadel's Kraken investment, which also valued that exchange at $20 billion.

XRP holds the tightest ties to Citadel, whose affiliates already own a slice of Ripple. Even if tokenized products land on Cronos, a significant buildout could serve as a gateway for institutional capital to enter the sector and lift valuations across major tokens.

Griffin's entry into crypto marks another step in the long process of traditional finance and crypto fusing. It is likely not the last time Citadel seeds its future opportunities in the space, and the convergence of equities, derivatives, and tokenized assets is set to accelerate as more Wall Street firms follow.

This article is for informational purposes only and does not constitute investment advice.