TP ICAP, a major global trader broker, is cooperating with Fidelity Investments and British banking giant Standard Chartered to launch a cryptocurrency trading platform.
TP ICAP’s upcoming cryptocurrency exchange is scheduled to be launched in the second half of 2021, and will initially provide bitcoin trading (Bitcoin), the world’s largest cryptocurrency, Reuters Report on Tuesday. Other digital assets, such as Ether (Ethereum) Will be added at a later stage.
Unlike most typical cryptocurrency exchanges, TP ICAP’s cryptocurrency trading platform will provide a post-trade infrastructure with a digital asset custodian network and independent execution and settlement to reduce credit risk.The platform will be hosted by Zodia, the digital asset custody division of Standard Chartered Bank, which is an institution-level Introduced an encrypted custody solution December 2020. Flow Traders, a market maker based in Amsterdam, will provide liquidity to the platform.
According to reports, the platform is waiting for the approval of the Financial Conduct Authority, the UK financial regulator. TP ICAP told reporters that neither Standard Chartered Bank nor Fidelity Investments invested in the platform.
Duncan Trenholme, co-director of digital assets at TP ICAP, said that in the past six to eight months, investor demand for crypto as a new asset class has surged. “In most of our conversations with customers, they want to separate the supervisory role from the execution capability, which is contrary to the current model,” he pointed out.
In recent years, TP ICAP has been actively entering the encryption field and has launched many encryption-related services. In June 2019, TP ICAP entered the crypto derivatives market, Allow its customers to buy or sell Bitcoin futures on the Chicago Mercantile Exchange. The company also plans to increase support for settlement of Bitcoin forward contracts.