Tower Research's Limestone Trading Ramps Up Crypto Bet Amid Trump's Regulatory Tailwind
Tower Research Capital's quant trading division, Limestone Trading, has reversed its cautious stance on crypto, ramping up funding for trading activities. This shift comes amidst growing interest from major Wall Street players and positive regulatory signals under President Trump's administration.
After scaling back involvement following the 2022 collapse of FTX and Alameda Research, and Binance's US regulatory settlement in 2023, Limestone is now expanding its crypto footprint. The division, which employs over fifty staff across global offices, has bolstered its infrastructure to facilitate transactions on major crypto exchanges.
The resurgence in crypto market depth, as indicated by Kaiko's research, and the emergence of Bitcoin-backed ETFs in the US, coupled with President Trump's endorsement, have contributed to Limestone's renewed confidence. The company's crypto operations primarily focus on spread trading, arbitrage, and market creation strategies.
Citadel Securities, led by Ken Griffin, is also preparing to enter the crypto liquidity sector, anticipating significant growth driven by President Trump's industry backing. Meanwhile, major Wall Street entities are gearing up for a surge in IPOs, share sales, and convertible bonds in the crypto sector.
Limestone Trading's increased funding for crypto trading activities signals a growing confidence in the market's prospects. As President Trump's administration fosters a more favorable regulatory environment, major financial players are positioning themselves for growth in the crypto sector.
