Tower Research Latest to Expand into Crypto, Gears Up to Dominate Market-Making

Tower Research Capital, a major player in high-speed trading, is ramping up its crypto operations through a lesser-known internal unit, Limestone Trading.

The move comes as institutional interest in digital assets resurges, buoyed by favorable political shifts and improving market conditions, particularly following former President Donald Trump’s renewed support for the industry.

Limestone Trading, a quantitative trading group within Tower, has quietly increased its capital commitment to cryptocurrencies, according to sources familiar with the matter, according to a Monday report from Bloomberg.

In tandem, the firm has upgraded its trading infrastructure to play a more significant role in market-making across global crypto exchanges.

The group is now reportedly leading Tower’s digital asset market-making efforts, leveraging machine learning strategies across multiple asset classes.

With over 50 team members spread across global financial hubs including New York, London, Singapore, and Gurgaon, Limestone operates independently within Tower’s decentralized structure.

The team focuses on crypto arbitrage, spread trading, and market-making, positioning itself as a key player in the evolving digital asset landscape.

Tower’s renewed focus on crypto comes after a period of caution.

Like many other firms, it scaled back digital asset activities following the industry’s implosion in 2022 — a year marked by the high-profile collapses of FTX and Alameda Research, as well as Binance’s multi-billion-dollar settlement with U.S. regulators.

However, the introduction of Bitcoin-backed ETFs in the U.S. and signs of regulatory easing have revived confidence among institutional players.

Tower isn’t alone. Other financial heavyweights, including Citadel Securities, Jane Street, and Jump Trading, are also deepening their crypto involvement.

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

Citadel is reportedly looking to become a market maker on major platforms like Coinbase, Binance, and Crypto.com.

Jane Street has been active in crypto markets since 2017, while Jump Trading has built out a dedicated crypto arm to cement its role in the sector.

According to a recent survey by Coinbase and EY-Parthenon, 86% of institutional investors surveyed said they had exposure to digital assets or planned to make allocations to cryptocurrencies in 2025.

Besides, thanks to the evolving regulatory landscape worldwide, institutions are increasingly viewing cryptocurrencies as a legitimate component of a balanced investment strategy.

Gadi Chait, Investment Manager at Xapo Bank, said in a recent interview that historically, institutional investors have been deterred by several factors, particularly crypto volatility concerns.

Further, meme coins fame and their “hype over substance” has discouraged widespread adoption as confidence erodes and distracts from genuine utility.

However, he added that with more awareness and research, investors are understanding the varying degrees of risk and utility.

Chait said that the interest from these major financial players “is indicative of a broader trend associated with the institutional adoption of digital assets.”

“Traditional finance is slowly waking up to crypto’s call and is vying for a piece of the pie.”

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