"Citadel Securities Is Pissed": Meet Kevin Reveals How Stablecoins Could End Wall Street's Market Maker Monopoly

Wall Street is reportedly in a state of absolute fury, and the reason? Stablecoins. According to financial YouTuber Meet Kevin, the SEC is on the verge of a decision that could fundamentally disrupt the multi-billion dollar market maker industry, sending giants like Citadel Securities into a panic. “Citadel Securities is pissed,” Kevin declares, pulling back the curtain on a financial revolution that could democratize stock trading as we know it.

The bombshell revelation centers on the SEC’s consideration of a plan to allow stocks to trade like cryptocurrencies on the blockchain. This means investors could soon buy tokens on crypto exchanges that represent shares of companies like Tesla and Nvidia. And while this sounds like a win for the average investor, it’s a nightmare scenario for the established titans of finance.

The Market Maker Monopoly: How Wall Street Makes Billions

Meet Kevin meticulously breaks down the intricate, often opaque, world of market makers. Companies like Citadel Securities make billions by providing liquidity to the markets, constantly offering to buy and sell stocks. They earn their massive profits by picking up the “spread”—the tiny difference between the buy and sell price.

“I know that market makers make a lot of money providing liquidity,” Kevin explains. He details the incredibly rigid requirements to become a registered market maker, including billions of dollars in capital, FINRA registration, and licenses. This arduous process creates a de facto market maker monopoly, where a few powerful firms receive “kickbacks” from exchanges for providing fast liquidity.

Stablecoins: The Disruptor That Could Cut Out the Middleman

But stablecoins, according to Kevin, could change everything. In a perfect world, if stocks are tokenized and traded on the blockchain, “stable coins potentially give anyone the right to become a market maker.” This means for highly liquid stocks like Tesla or Nvidia, there’s enough natural liquidity that you wouldn’t need these registered market makers. They would simply be cut out of the equation.

“So, guess what? Oh my gosh, what a surprise. Citadel Securities is pissed,” Kevin states, highlighting the direct threat this poses to their multi-billion dollar business model. The idea of crypto trading stocks is no longer a fringe concept; it’s a looming reality that could dismantle a core component of traditional finance.

The Irony of Innovation: TradFi Protections for Crypto

Kevin also points out the delicious irony of the situation. While crypto threatens to upend traditional finance, stablecoin issuers like Circle are looking into implementing “reversible transactions” to bring “traditional finance fraud protections to crypto.” This, he notes, messes with the “immutability of the blockchain” argument but acknowledges the value of such protections.

Winners and Losers in the New Financial Frontier

If the SEC’s plan moves forward, the winners are clear: companies like Robinhood and other broker-dealers who could benefit from this democratization of market making. The losers? The traditional market makers like Citadel, who stand to lose a “crapload of money” as their lucrative role is diminished.

Meet Kevin’s insights provide a crucial understanding of the seismic shifts occurring in the financial world. The battle between traditional finance and crypto is intensifying, and the SEC’s decision on SEC tokenized securities could be the catalyst for a new era of democratizing finance.

What do you think? Will stablecoins truly democratize stock trading and cut out Wall Street giants? Let us know in the comments below!

Related Topics: News • PewDiePie • Sourav Joshi (Sourav Joshi Vlogs) • Fukra Insaan