.png){kind=logo}
In a surprising move from Wall Street’s traditional circles, billionaire investor Ken Griffin has acquired a 4.5% stake in DeFi Development Corp (DFDV), a company tied closely to the Solana ecosystem. The regulatory filings released this week show Griffin now owns roughly 1.3 million shares, while Citadel Advisors LLC separately holds 800,000 shares. Together, the Citadel group controls 2.1 million shares in the firm.
This development marks one of the most significant institutional steps toward digital assets by Griffin, once a vocal skeptic of crypto. The move adds to growing evidence that major Wall Street players are now exploring blockchain-based finance at scale.
Citadel is now part of an increasing number of traditional institutions entering the digital finance arena, including firms like BlackRock, JPMorgan Chase, Fidelity, and Citigroup, which have also developed a digital asset practice over the last year.
A recent report by a16z Crypto has claimed that institutional adoption is accelerating during what they call the "institutional migration phase" of crypto engagement. Citadel's entry aligns with the movement of skepticism toward structured involvement.
Citadel Advisors LLC, registered with the US Securities and Exchange Commission, is responsible for managing a part of Citadel's $65 billion portfolio. The investment indicates an interest in blockchain infrastructure characterized by liquidity and market data accuracy, which aligns with the nature of Citadel's business.
Does this mean a wider institutional pivot to decentralized finance?
DeFi Development Corp. is not like any exchange or traditional custodians; it acts more like a digital asset treasury (DAT). The structure allows it to hold a large amount of Solana (SOL) as a key asset on a balance sheet. This is analogous to corporate treasury cash management in the traditional financial system, but it is done in the blockchain ecosystem.
In early September, DeFi Development spent approximately $117 million, purchasing SOL over the course of eight days. Their total holdings have reached 2.19 million tokens, valued at around $400 million, with a cost basis of $236 million. Despite price fluctuations, the position is still profitable.
Aside from Forward Industries, which has 6.8 million SOL, no other Solana treasury is larger. Industry experts pointed out the increasing interest from companies in DAT strategies to acquire growth-linked assets that could benefit balance sheet progression and attract investors.
While the model has promise, experts caution that market pressures will lead to a reshaping of the entire sector. Coinbase’s head of institutional research, David Duong, said that as regulatory and liquidity changes happen, it will cause consolidation in DAT firms.
Standard Chartered analysts caution that declines in market net asset value (mNAV) could limit capital access for smaller treasuries. Weak crypto markets might slow expansion and force mergers as firms seek stability.
For Griffin, this move represents a strategic turn from dismissal to measured involvement in digital assets. Industry observers view Citadel’s position as a hedge against future market relevance, where finance and blockchain continue to converge.
Ken Griffin’s 4.5% stake in DeFi Development Corp marks a pivotal moment for Citadel’s entry into digital assets. The move highlights Wall Street’s growing embrace of blockchain and Solana-based investments, signaling a wider institutional transition toward decentralized finance.
