TP ICAP, a significant international interdealer broker, is partnering with Fidelity Investments and Standard Chartered to develop a cryptocurrency trading platform. According to Reuters, TP ICAP’s planned crypto exchange is set to open in the latter half of 2021 and will first focus on trading Bitcoin (BTC), the numero uno cryptocurrency.
At a future date, other cryptos such as Ether (ETH) will be added. TP ICAP’s cryptocurrency marketplace, unlike most traditional crypto exchanges, will offer post-trade facilities with a chain of digital asset custodians, and also independent processing and settlement, with the objective of reducing financial risk.
Standard Chartered’s digital currency custody subsidiary, Zodia custody, an institutional-level crypto custody service announced in December 2020, will power the platform. Flow Traders, an Amsterdam-based market maker, will ensure liquidity to the platform.
As per the article, the platform is seeking clearance from the Financial Conduct Authority, the UK’s financial regulator. According to TP ICAP, both Standard Chartered and Fidelity Investments have acquired a stake in the platform.
Investor interest for crypto as a store of wealth has surged in the last six to eight months, according to Duncan Trenholme, TP ICAP’s co-head of digital assets. “In almost all of our customer interactions, they desire a segregation of custodial duties from execution capabilities, which is the polar opposite of the present models,” he explained.
In recent times, TP ICAP has made a concerted effort to enter the crypto space, launching a range of crypto-related services. TP ICAP debuted the crypto derivatives market in June 2019, enabling its customers to purchase and sell Bitcoin futures on the Chicago Mercantile Exchange.
The company also planned to offer services for the fulfillment of Bitcoin forward contracts.
