Susquehanna International Group's Crypto Strategy: A Deep Dive

Susquehanna International Group: From Traditional Trading to Crypto Pioneer

Susquehanna International Group (SIG), founded by billionaire Jeff Yass, began as a proprietary trading firm in 1987 and has evolved into one of the largest market makers for listed equity options in the United States. Its operations now span over 50 global markets, providing liquidity for equities and derivatives. SIG gained recognition in the Chinese market through its fund, SIG Asia Investments, which made an early-stage investment in ByteDance.

SIG is known for its proactive approach to both investment and trading. Over the past decade, the firm has gradually entered the crypto asset space, starting with participation in Bitcoin spot and derivatives markets, and then expanding through its entities to offer market-making services on compliant exchanges. Through platforms like SIG DT and SIG Venture Capital, SIG has systematically invested in public blockchain infrastructure, DeFi protocols, digital identities, and more.

SIG's Entry into the Crypto World

SIG began exploring Bitcoin trading as early as 2014, participating in discussions about market making for early Bitcoin ETF plans. By 2016, SIG had formed a dedicated cryptocurrency trading team, which expanded to about 12 individuals by 2018, trading millions of dollars in Bitcoin and other crypto assets via over-the-counter (OTC) deals.

Bart Smith, Head of Digital Assets at SIG, stated in 2018 that the company operated a dedicated crypto trading desk and viewed Bitcoin as 'digital gold.' He also noted that crypto assets and the underlying blockchain technology were here to stay and would reshape financial services, reinforcing SIG's growing commitment to the space.

Expansion into Market Making and Prediction Markets

SIG's approach to the crypto asset sector aligns with its expertise in traditional markets: starting with proprietary capital to test strategies and infrastructure on and off exchanges, and then gradually expanding to provide liquidity in more transparent and regulated venues.

In 2022, TP ICAP announced that Susquehanna Digital Assets, a SIG affiliate, had joined its Digital Assets Spot platform as a liquidity provider and market maker, alongside firms like Flow Traders, Jane Street, and Virtu Financial. Additionally, SIG provides liquidity in several regulated digital asset and derivatives trading venues, although most of these partnerships are not publicly disclosed.

To streamline its crypto operations, SIG established Susquehanna Crypto, a digital asset trading firm based in the Bahamas. The company is registered with the Securities Commission of The Bahamas as a digital asset business and trades spot and derivative digital assets globally using automated trading algorithms.

Participation in Prediction Markets and Acquisition of LedgerX

In addition to liquidity and market making, SIG has recently focused on emerging trading platforms like 'prediction markets.' Prediction markets allow users to buy and sell contracts based on the outcomes of real-world events, such as election results or economic indicators. These trades are considered event derivatives, similar to futures and options in traditional finance.

In April 2024, Susquehanna Government Products, LLLP, a SIG affiliate, became the first designated market maker on Kalshi, the first regulated prediction market exchange in the United States. SIG created a dedicated trading desk specifically for operations on Kalshi, providing continuous two-sided quotes and deep liquidity. Tarek Mansour, co-founder of Kalshi, noted that the addition of SIG as an institutional market maker 'changed everything,' introducing unprecedented liquidity to the prediction market.

In November 2025, SIG further strengthened its involvement in the prediction market sector by announcing an agreement with American online brokerage firm Robinhood to jointly acquire up to 90% of the shares of regulated crypto derivatives exchange LedgerX. This move is seen as a significant milestone in the two companies' efforts to expand their presence in the prediction and derivatives markets.

Investment in Crypto Infrastructure

In addition to direct participation in trading and platform operations, SIG and its affiliated investment entities also invest in various aspects of the crypto industry value chain through venture capital and M&A. Notable SIG investments include:

• Pyth Network: Providing real-time price data for crypto assets for DeFi.
• Hxro Network: A derivatives liquidity network built on Solana.
• Kadena: A high-throughput public blockchain infrastructure.
• Infinity Exchange: A decentralized marketplace for fixed income and derivatives.
• SynFutures: A decentralized derivatives exchange.
• Accredify: Blockchain-based verifiable credential solutions.
• TokenInsight: A crypto rating and data services agency.
• zkPass: A privacy-preserving identity and proof protocol.
• KuCoin: A cryptocurrency exchange.
• TigerWit: A forex/CFD trading platform.
• Blofin: A digital asset management firm.

These investments showcase SIG's focus on infrastructure, data, and risk management in the crypto market. Unlike many other firms, SIG avoids hype and adheres to a long-term approach to investing in the space.

Conclusion

SIG's entry into the cryptocurrency industry reflects its style as an old-school derivatives market maker. Rather than relying on noisy advertising campaigns, SIG focuses on liquidity, pricing, and risk management infrastructure, seeking opportunities in emerging markets. By investing in infrastructure, data, and prediction markets, SIG is positioning itself as a leader in the evolving world of digital assets.