Crypto.com Secures $400M From Citadel Securities at $20B Valuation

Crypto.com has reportedly secured a $400 million from market maker Citadel Securities in a strategic investment that pushed the crypto exchange’s valuation to $20 billion. This funding is especially noteworthy as it marks the firm’s first institutional investment since its launch in 2016.

As noted by Crypto.com, the investment will be used to expand its offerings in tokenized securities, derivatives, and other crypto products. According to CEO Kris Marszalek, the funding will help connect traditional finance and the crypto space via Crypto.com.

Crypto.com eyes expansion with $400M funding from Citadel

A new press release issued on July 16 revealed that Citadel Securities invested a massive $400 million in the Singapore-based crypto exchange, Crypto.com. The investment, which valued the company at $20 billion, will be utilized to expand its exposure to tokenized securities, derivatives, and more digital asset services. CEO Marszalek stated,

“We are thrilled to work with Citadel Securities to continue driving the crypto industry into a new era of institutionalization. The size of the opportunity in front of us is staggering, as crypto increasingly becomes the rails for finance. Having built the right regulatory and tech infrastructure over the last decade, Crypto.com is now perfectly positioned to capture this new wave of growth across all asset classes.”

TradFi and Crypto continue to converge

This deal is even more important as it could help accelerate the growing convergence between traditional finance (TradFi) and the crypto space. The deal between Crypto.com and Citadel could be considered the latest example of this convergence. Crypto.com President Jim Esposito stated,

“The convergence of traditional financial markets and digital asset infrastructure is an exciting evolution with the potential to further improve market efficiency. Crypto.com has built a foundation to support the continued institutionalization of the digital asset market, and we are pleased to collaborate with the Crypto.com team as we help create the capital markets of the future.”

It is worth noting that more TradFi giants, including banks and other financial institutions, are increasingly embracing crypto and blockchain. The US Bitcoin ETFs and other altcoin funds are the biggest examples. Major asset managers like BlackRock, Fidelity, and Franklin Templeton have now become leading issuers of crypto exchange-traded funds.

Tokenization has also emerged as a significant trend that unites TradFi and blockchain. Financial platforms like JPMorgan and Morgan Stanley are exploring the possibilities of tokenization.

Crypto funding slows

Despite the latest Crypto.com investment from Citadel Securities, it is really concerning that crypto funding has slowed down recently. Although large companies are receiving significant investments, the broader market is experiencing fewer funding deals.

CryptoRank data reveals that crypto companies completed just 61 funding rounds in June. This figure represents the lowest monthly total since November 2020.  The figure was also down by 31.5% from the 89 deals in May.

Source: CryptoRank

In addition, the total amount of capital raised also declined sharply. As per the data, crypto startups secured $1.44 billion in June, marking a notable drop from the $3.89 billion in May.

Source:: Crypto.com Secures $400M From Citadel Securities at $20B Valuation