TP ICAP, a market infrastructure and data solutions provider based in London, announced Tuesday that it will roll out a wholesale trading platform for cryptoassets, subject to registration with the U.K. Financial Conduct Authority.
The platform will feature a wholesale electronic marketplace for spot cryptoasset trading, including Bitcoin and Ethereum, and provide connectivity and post-trade infrastructure into a network of digital asset custodians.
TP ICAP is working with crypto custodians Fidelity Digital Assets and Zodia Custody to ensure that clients have a segregated and interoperable model for execution and settlement, a key requirement for clients entering this new asset class.
The firms have developed a new trading model whereby clients will be able to access liquidity at TP ICAP while their assets remain under custody at their digital asset custodian of choice.
In the U.S., Fidelity has been an early adopter of cryptocurrency services, offering custody and trade execution services for cryptoassets since 2019. Last year it launched a Bitcoin fund for wealthy investors and let clients on its digital assets custody platform pledge Bitcoin as collateral for cash loans. In April, it formed a crypto lobbying group with several other investment firms. The Securities and Exchange Commission is reviewing Fidelity’s Wise Origin Bitcoin Trust ETF.
TP ICAP launched its digital Assets business in 2019, enabling clients to trade cryptoasset derivatives products. The new trading platform for the spot market is intended to expand the firm’s footprint in this fast-growing area.
TP ICAP has also partnered with Flow Traders, a financial technology-enabled liquidity provider in financial products that has historically specialized in exchange-traded products and is now expanding into other asset classes. Flow Traders will be one of the initial liquidity providers on this new platform.
The platform has already begun to onboard clients and will launch to the market in the second half of the year, by which time TP ICAP said it expects to announce more liquidity providers.
It is also working with additional strategic custody partners, and expects to expand its network of digital asset custodians as it establishes a new industry model for clearing and settlement.