Tower Research Capital, a key contender in the high-speed trading arena, is significantly enhancing its cryptocurrency operations through a relatively obscure internal division known as Limestone Trading.
This initiative emerges as institutional interest in digital assets is revitalized, driven by favorable political developments and improving market conditions, particularly in light of former President Donald Trump’s renewed endorsement of the sector.
Tower Research Boosts Infrastructure for Crypto Market-Making Expansion
As part of its strategic shift, the firm has upgraded its trading infrastructure to enhance its market-making capabilities across various global cryptocurrency exchanges.
The group is now supposedly spearheading Tower’s market-making operations in the digital asset space, employing machine learning strategies across diverse asset classes.
With a workforce exceeding 50 members situated in financial hubs such as New York, London, Singapore, and Gurgaon, Limestone functions autonomously within Tower’s decentralized framework.
The team is concentrated on crypto arbitrage, spread trading, and market-making, establishing itself as a vital participant in the rapidly evolving digital asset landscape.
This renewed emphasis on cryptocurrencies follows a cautious period for Tower.
Similar to many firms, it had scaled back its digital asset operations after the industry’s turmoil in 2022, a year marked by the significant collapses of FTX and Alameda Research, as well as Binance’s substantial settlement with U.S. regulators.
Recent developments, including the introduction of Bitcoin-backed ETFs in the U.S. and indications of regulatory relaxation, have reignited institutional confidence.
Tower is not alone in this resurgence. Other major financial firms, including Citadel Securities, Jane Street, and Jump Trading, are also intensifying their engagements within the crypto sector.
72 crypto ETFs are currently under review by the SEC.
This is a huge development. The institutional interest is clear, and the future of crypto ETFs is unfolding before us.
Stay ahead of the game. pic.twitter.com/MjH4ZdR8ga
— Thomas Kralow (@TKralow) April 26, 2025
Citadel is reportedly positioning itself to become a market maker on major trading platforms like Coinbase, Binance, and Crypto.com.
Jane Street has actively participated in the crypto markets since 2017, while Jump Trading has established a dedicated crypto division to solidify its presence in the industry.
Growing Institutional Interest in Crypto from Financial Giants
A recent survey conducted by Coinbase and EY-Parthenon reveals that 86% of institutional investors surveyed either have exposure to digital assets or are planning to allocate funds to cryptocurrencies in 2025.
Furthermore, the evolving regulatory landscape globally is encouraging institutions to increasingly perceive cryptocurrencies as a legitimate element of a diversified investment strategy.
Gadi Chait, Investment Manager at Xapo Bank, noted in a recent discussion that historical concerns about cryptocurrency volatility have deterred institutional investors.
Additionally, the hype surrounding meme coins has undermined confidence and distracted from tangible utility, hampering widespread adoption.
Chait emphasized that greater awareness and research are leading investors to comprehend the different levels of risk and utility associated with digital assets.
He remarked that the growing engagement from major financial institutions reflects a broader trend toward the institutional embrace of digital assets.
“Traditional finance is slowly waking up to crypto’s call and is vying for a piece of the pie.”
The post Tower Research Latest to Expand into Crypto, Gears Up to Dominate Market-Making appeared first on Finance Newso.
