TP ICAP the world’s greatest interdealer broker is launching a cryptocurrency trading platform with Fidelity Investments and Standard Chartered’s digital assets custody unit, the conglomerate said on Tuesday.
Institutional investors have warmed to the crypto sector this year and the platform, which is to be launched in the second half of the year, will initially permit them to trade bitcoin, with second-biggest token ether to be included later.
TP ICAP, alongside Fidelity Digital Assets and Zodia Custody, launched by the venture capital arm of Standard Chartered and Northern Trust in December, is looking to make crypto trading likened to that of conventional resources like stocks, securities and foreign exchange.
The platform will offer post-trade infrastructure with an organization of digital assets custodians, the consortium said in a statement and separate execution and settlement, something broadly seen as key to more noteworthy contribution of bigger risk averse investors in the growing crypto market.
As of now, crypto execution and custody services are generally done in one setting, expanding credit risks. Amsterdam-based Flow traders will give liquidity to the platform.
TP ICAP has widened its impression in global capital markets by offering new data and analytics services and launching new products.
Committed crypto funds have seen record streams this year however significant banks offering access should offset developing interest with the consistent worries over time connected with the digital currency sector and expanding scrutiny by regulators.
All things considered, the move is the most recent endorsement of the sector by Standard Chartered, whose venture capital unit said recently it will set up a different crypto brokerage and exchange platform in Britain and Europe, with Hong Kong’s BC Technology Group.
“Investor interest in this new resource class has expanded significantly in the last six to eight months,” Duncan Trenholme, co-head of digital assets at TP ICAP, said. “In the vast majority of our discussions with customers, they need a distinction of custodial roles from execution capacities which is inverse to the models that exist presently.”
TP ICAP launched bitcoin futures and options on CME in 2019 and now intends to launch other derivative products including total return swaps and non-deliverable forwards.
The platform is anticipating endorsement by Britain’s financial regulator. Neither Standard Chartered nor Fidelity Investments have put resources into the platform, TP ICAP said.
