The Last Defiance of Traditional Finance? Citadel Struggles with Blockchain, a Capital Struggle Understandable Even for Beginners
Recently, Citadel Securities, a top market maker on Wall Street, called out to the U.S. SEC: Don't open a "regulatory backdoor" for tokenized stocks! In simple terms, they oppose turning traditional stocks into digital tokens on the blockchain, such as converting Apple Inc. stock into an on-chain "iToken," and they demand that these products must comply with all securities regulations just like regular stocks. This matter seems to be a technical detail dispute, but in reality, it's a "defensive counterattack" by traditional financial giants against the crypto market.
My opinion: What is Citadel afraid of?
On the surface, this is a dispute over regulatory compliance, but underneath is a dark war over the flow of trillions of dollars in capital. Traditional financial institutions are well aware that once tokenized assets gain regulatory exemption, it would effectively open a "legal money-raising channel" for the crypto market, potentially diverting a large amount of funds from the traditional stock market to the blockchain, shaking the very foundation of liquidity in Wall Street. For example: If Tesla stock could be
exchanged 1:1 for an on-chain token, traded 24/7 with lower fees, which market would you choose to operate in?
Even more intriguing is the stark contrast between Citadel's "conservative posture" and the proactive layout of crypto institutions. For instance, Nasdaq has already planned to launch a tokenized securities platform, while Fidelity, BlackRock, and other institutions are quietly testing on-chain stock trading. The more traditional giants oppose it, the more it indicates that the crypto market is touching their core interests.
History is always strikingly similar.
This reminds me of the GameStop incident in 2020, where Citadel was thrust into the spotlight for its deep involvement in derivatives trading as a market maker. Now, their opposition to tokenized stocks is essentially the instinctive resistance of vested interests to changes in market rules. But the wheel of time cannot turn back, just as electronic trading replaced phone orders in the past, current blockchain technology is also reconstructing the infrastructure of securities trading.
Lastly, let me say a hard truth:
The blade of regulation hangs overhead, but the tide of the crypto market is unstoppable. Do you think the SEC should give tokenized stocks the "green light"? Share your thoughts in the comments section.
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