Tower Research’s Limestone Trading boosts crypto bets amid Trump backing

Limestone Trading, a Tower Research unit, increases capital and upgrades infrastructure to expand crypto market making.

People walk past a cryptocurrency exchange office displaying a screen with an image of U.S. President Donald Trump holding cryptocurrency coins, in Hong Kong on March 12, 2025. Photo by Mladen Antonov/AFP

By Anna Fadiah and Hayu Andini

A quiet yet significant move is unfolding within the walls of high-speed trading giant Tower Research Capital. Limestone Trading, one of Tower’s internal quant groups, is ramping up its crypto exposure as institutional appetite for digital assets strengthens following President Donald Trump’s public endorsement of the crypto industry. The development marks a notable shift in strategy, particularly after the cautious retreat seen across the trading sector during the industry’s recent downturn.

People familiar with the matter say Limestone Trading has significantly increased capital allocation to its crypto trading portfolio. The team has also upgraded its technical infrastructure, signaling a deeper role in market making across global digital asset exchanges. These enhancements point to a calculated bet on the long-term viability of cryptocurrencies within Tower Research’s broader trading strategy.

Tower Research crypto trading returns to the spotlight

The move by Tower Research Capital’s Limestone Trading comes as crypto market sentiment undergoes a revival. Following the collapse of FTX, Alameda Research, and Binance’s $4.3 billion settlement with U.S. regulators, institutional investors had cooled on the sector. Tower, like many trading firms, scaled back operations amid regulatory uncertainty and extreme volatility.

However, the tide appears to be turning. Trump’s vocal support of cryptocurrency, coupled with the approval of Bitcoin-backed ETFs in the United States, has reignited interest among institutional players. Market depth — a key indicator of liquidity — has reportedly returned to pre-FTX-crisis levels, according to analytics firm Kaiko.

Limestone Trading is seizing the moment. With over 50 staff members distributed across New York, London, Singapore, and Gurgaon, the team is now Tower’s lead unit for digital asset market making. The group applies machine learning algorithms and data-driven strategies to arbitrage, spread trading, and liquidity provisioning on major crypto exchanges.

Tower’s decentralized structure empowers Limestone’s strategy

Tower Research operates a unique decentralized organizational structure. Desks like Limestone function semi-autonomously, allowing them to pivot and adapt to market opportunities with agility. This operational independence has been critical to Limestone’s expansion into the digital asset space, insiders said.

Although exact figures on capital infusion and headcount were not disclosed, the signals are clear: Tower Research crypto trading is no longer a peripheral operation. It is emerging as a central pillar of the firm's future-facing strategy.

A spokesperson for Tower Research declined to comment on the developments. However, previous reporting by Bloomberg News revealed that Tower was among three "VIP" clients referenced anonymously in the Commodity Futures Trading Commission’s lawsuit against Binance, further highlighting the firm’s proximity to significant market events in the crypto sector.

Wall Street competitors also jump into digital assets

Tower Research is not alone in its renewed crypto focus. Other major trading firms are aggressively positioning themselves in the space. Citadel Securities is seeking to become a key market maker on exchanges like Coinbase, Binance, and Crypto.com. Jane Street Group, a dominant force in ETFs and corporate bonds, has been active in crypto markets since 2017 and continues to build on that foundation. Meanwhile, Jump Trading has developed a dedicated crypto division, quickly rising to become one of the top liquidity providers in digital assets.

This competitive expansion suggests that crypto is once again seen as a viable — and perhaps necessary — frontier for institutional trading firms. The mix of improving liquidity, friendlier regulatory rhetoric, and political tailwinds has created fertile ground for re-engagement.

Infrastructure investments reflect long-term confidence

Limestone Trading’s infrastructure upgrades are particularly telling. The group has reportedly enhanced systems that enable faster and more efficient connectivity with global crypto exchanges. These improvements are essential for high-frequency market making and arbitrage, where latency and execution speed are critical. The upgrades signal that Tower sees crypto not merely as a speculative bet, but as an enduring asset class deserving of long-term commitment.

Market participants note that advanced infrastructure also enables strategies that capitalize on fragmented liquidity and price inefficiencies — conditions that are still prevalent in the crypto ecosystem.

Political support fuels market optimism

The shift in Tower Research crypto trading strategy is closely tied to changing political dynamics. Trump’s embrace of cryptocurrency — including his comments supporting the digital asset industry during campaign stops — has been viewed as a potential inflection point. If his influence leads to a more predictable and favorable regulatory environment, many firms may return to crypto markets with renewed vigor.

Bitcoin-backed ETFs, already approved by U.S. regulators, are another pillar supporting this resurgence. These financial products provide institutional investors with a regulated and relatively straightforward means to gain exposure to digital assets, further legitimizing the asset class.

What lies ahead for Tower and its rivals

As Limestone Trading sharpens its competitive edge, the broader question is how long this renewed enthusiasm will last. Crypto markets remain volatile, and regulatory uncertainty still lingers despite recent positive developments. However, if political support continues and institutional participation deepens, the sector could be poised for a new era of sustained growth.

Tower Research’s model of semi-independent desks could prove advantageous, enabling rapid adaptation to fast-changing market conditions. Limestone Trading, already a frontrunner in Tower’s crypto endeavors, is well-positioned to capture emerging opportunities.

The landscape is evolving quickly, and firms that combine technical expertise, political savvy, and robust infrastructure will have a distinct advantage. For now, Tower Research crypto trading — led by Limestone Trading — is once again a key player in the digital asset resurgence.