TP ICAP Group LLC, the world‘s biggest Interdealer broker is all set to set foot in the crypto market with its crypto trading platform, as per a report in Reuters. The financial broker would launch the platform in association with Fidelity Investments and Standard Chartered’s custody unit Zodia, who will act as custodians for the trading platform. Amsterdam-based Flow Traders will provide liquidity to the platform.
The upcoming crypto trading platform is set to launch in the second half of the year. The platform would offer Bitcoin trading to start with and later add Ether trading as well. It would also offer post-trade infrastructure of various custodians for ease of investment and security.
Duncan Trenholme, co-head of digital assets at TP ICAP said,
“Investor interest in this new asset class has exploded dramatically in the last six to eight months. In most of our conversations with clients, they want a separation of custodial roles from execution capabilities which is opposite to the models that exist currently.”
This wont be the first crypto venture for the members of the consortium as TP ICAP launched Bitcoin Futures and Options contract on CME in 2019. Fidelity has filed for a Bitcoin ETF in the US while Standard Chartered is all set to launch a separate crypto brokerage and exchange platform.
TP ICAP to Focus on Separate Execution and Settlement
The financial markets biggest broker along with partner financial giants are aiming to make crypto trading akin to the traditional trading of stocks and bonds. The consortium beleive crypto custody and execution should be two separate entities as rolling them into one poses serious credit risks, something most of the crypto service providers make these days.
The consortium is waiting for the approval of Britains financial regulator FCA to launch the crypto trading platform. The involvement of mainstream financial giants is a bullish sign for the adoption of cryptocurrencies as it not only expands the reach but also ensures regulatory compliance.