US electronic trading giant Citadel Securities is investing in crypto-friendly bank Silvergate Capital, taking a 5.5% stake in the bank whose shares have been rising. Under investigation by the US Department of Justice, Silvergate faces scrutiny over their involvement with the bankrupt FTX exchange and its affiliates. Citadel Securities is also building a trading consortium with Virtu Financial, Sequoia and Paradigm, aimed at addressing deficiencies in the current crypto market structure and attracting a new wave of investors. The consortium is described as a “crypto trading ecosystem or marketplace” and is developed to compete with exchanges.
Welcome to BitBoy Crypto! My name is Ben. Make sure to smash that like button for us if you like these videos. Today, we’re going to be taking a look at Silvergate and Citadel and what’s coming that no one knows about, a secret weapon.
Citadel Securities Takes 5.5% Stake in Silvergate
Shares in Silvergate Capital jumped after market maker Citadel Securities reported a 5.5% stake in the crypto-friendly bank. Silvergate Bank has been facing all kinds of trouble, facing increasing scrutiny over the past few months since the collapse of FTX. Silvergate reportedly had a more than $1 billion net loss for the fourth quarter as they faced a “crisis of confidence.”
Crypto bank Silvergate is reportedly being probed by the US Department of Justice fraud unit over its involvement with the bankrupt FTX exchange and its affiliates. The bank axed 40% of its staff and disclosed taking out billions of dollars in loans to prevent a liquidity crisis and bank run following the fall of FTX.
Silvergate at the Middle of it All
Silvergate’s attached to almost every major company there is in crypto. The Silvergate Exchange Network is a big thing that a lot of people have questions about. It’s not blockchain, but it operates similar to blockchain. They process transactions of every one of these companies. Silvergate Department of Justice fraud probe will create some FUD for crypto exchanges.
Citadel’s Interest in Crypto Trading
US electronic trading giant Citadel Securities is building a “cryptocurrency trading ecosystem” with the help of high-frequency trading and market-making firm Virtu Financial, as well as venture capital firms Sequoia and Paradigm. EDX Markets is a new digital asset exchange that combines innovative technology with best practices from traditional finance. With backing from leading names in finance, EDXM is building the most trusted, efficient, and liquid platform for trading cryptocurrencies.
EDXM, EDX Markets, the secret weapon of TradFi. If we allow TradFi to come in and take over our space, we could be looking at a future where only accredited investors can invest in cryptocurrencies, and it’s all regulated. It’s time to take action and prevent this from happening.