TP ICAP, a leading provider of market infrastructure, is to launch an innovative wholesale trading platform for cryptoassets, working in collaboration with Fidelity Digital AssetsSM, Zodia Custody and Flow Traders.

The new platform, which is subject to registration with the UK Financial Conduct Authority[1], will feature a wholesale electronic marketplace for spot cryptoasset trading, including Bitcoin and Ethereum, as well as providing connectivity and post-trade infrastructure into a network of digital assets custodians. 

TP ICAP is required to register the TP ICAP Digital Assets Platform with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLRs”). TP ICAP has submitted an application to the FCA and the platform will only launch once that registration process has been completed. The FCA’s responsibility under this regime is limited to AML/CTF registration supervision and enforcement only. It is not a license from the FCA or a recommendation or endorsement of the platform.

TP ICAP is working with Fidelity Digital Assets and Zodia Custody, both leading crypto assets custodians, to ensure clients have a segregated and interoperable model for execution and settlement, a key requirement for clients entering this new asset class. The firms have collaborated to develop a new trading model where clients will be able to access liquidity at TP ICAP whilst their assets remain under custody at their digital asset custodian of choice, providing a level of security that institutional investors expect.  Fidelity Digital Assets and Zodia Custody will provide custodian services to the new platform.

TP ICAP launched its Digital Assets business in 2019, enabling clients to trade cryptoasset derivatives products; this new trading platform for the spot market significantly expands the firm’s footprint in this fast-growing area.

Simon Forster, Co-Head of Digital Assets at TP ICAP, said: “Client demand to trade spot cryptoassets is significant and growing, with interest coming from our traditional customer base across the different asset classes we operate in.  But to date many of our clients have been prevented from accessing cryptoasset markets due to current limitations in market infrastructure, with most execution venues requiring pre-funding and also acting as custodian. This poses challenges from a conflict of interest perspective and results in fragmented liquidity. Our partnership, and resultant new platform, is a natural evolution in market structure that will make digital assets, such as Bitcoin, more accessible for the wholesale market.”

TP ICAP has also partnered with Flow Traders, a leading global financial technology-enabled liquidity provider in financial products, historically specialised in Exchange Traded Products (ETPs), now expanding into other asset classes. Flow Traders has been providing liquidity to cryptoasset markets since 2016 and will be one of the initial liquidity providers on this new platform.

Michael Lie, Head of Digital Asset Trading at Flow Traders said “We are delighted to be partnering with TP ICAP as a liquidity provider on this new platform. As the #1 market maker in cryptocurrency ETPs, as well as being a leading spot OTC liquidity provider, we have seen first-hand the increase in institutional interest in cryptoassets. We have long been in favour of initiatives such as this that will make the crypto space more accessible for investors.”

The platform has already started to onboard clients and will launch to the market in the second half of the year, by which time TP ICAP expects to announce additional liquidity providers. TP ICAP is also working closely with a number of 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.

The TP ICAP Digital Assets business is led by Duncan Trenholme and Simon Forster and operates from the firm’s offices in London, New York, and will soon expand into Asia. The trading platform, which will be launched in London, will be made available globally to customers across the TP ICAP Group as well as to new clients of the firm seeking market access to this new asset class.

Andrew Polydor, Global Head of Markets at TP ICAP, said: “This platform will provide our global client base with the trading infrastructure, connectivity, surveillance, and market standards they require as a minimum across traditional markets whilst also recognising the nuances of this new asset class. It leverages mature trading technology developed by our partners GMEX Technologies, to provide spot liquidity in digital assets as well as access to multiple custodians via a bespoke post-trade solution. These are key requirements for our institutional clients who want to be able to trade, invest and safely access this growing area of the market.”

Chris Tyrer, head of Fidelity Digital Assets in Europe, said: “Collaborating with industry leaders like TP ICAP to bring to market innovative solutions that strengthen the digital assets ecosystem is critical to enabling even more institutional participation. With this new infrastructure, we’re addressing one of the frictions in the investor experience that’s unique to this nascent asset class. Now, investors can more confidently execute trades knowing their assets remain still and secure in our custody.”

Maxime de Guillebon, Chief Executive Office of Zodia Custody said: “Zodia and TP ICAP share the same vision of the future of crypto asset investing. By combining liquidity with institutional-grade custody we will create an ecosystem that complements the expectations of institutional investors in terms of segregation of duties and asset safety. This infrastructure will enable operational efficiency and speed of transaction without compromising on security or reliability.”

Zodia Custody is a venture incubated by SC Ventures, the innovation arm of Standard Chartered.  Zodia combines the Banks’ expertise as trusted custodians with the agility of a fintech company to drive industry leadership and transformation.  Zodia is a cryptocurrency custodian serving institutional clients across the globe. Zodia is in the process of registering with the FCA under UK Money Laundering Regulations and expects to launch commercially in the second half of 2021.

[1] TP ICAP is required to register the TP ICAP Digital Assets Platform with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLRs”). TP ICAP has submitted an application to the FCA and the platform will only launch once that registration process has been completed. The FCA’s responsibility under this regime is limited to AML/CTF registration supervision and enforcement only. It is not a license from the FCA or a recommendation or endorsement of the platform.

Click here to see the website

Media Contact
TP ICAP
William Baldwin-Charles
E: William.Baldwin-Charles@tpicap.com

About TP ICAP Group plc

TP ICAP Group plc is a leading global markets infrastructure and data solutions provider.  The Group operates a portfolio of separate and competing brands to deliver intermediary services, contextual insights and intelligence, trade execution, pre- and post-trade services, and data-led solutions. We are formed of four business divisions:

• Global Broking: the largest Interdealer Broker in the world operating under the ICAP, Tullett Prebon and Louis Capital brands servicing clients in Rates, FX, Credit and Equities. We match buyers and sellers, facilitate price discovery, liquidity, execution and risk management.
• Energy & Commodities: the world’s leading OTC energy and commodities broker operating under the ICAP, PVM and Tullett Prebon brands. Active in all major commodities markets including oil, gas, power, renewables, ferrous metals, base metals, precious metals and soft commodities. 
• Agency Execution: serving the buy side operating under the Liquidnet and COEX Partners brands. We provide trading services for a broad range of asset classes, serving a sophisticated client base of asset managers, asset owners and hedge funds.
• Data & Analytics: the largest OTC data provider in the world operating predominantly under the Parameta Solutions brand offering unbiased data products and solutions that facilitate trading, enhance transparency, reduce risk, improve operational efficiency and a broad range of risk management solutions. 

         www.tpicap.com

About Fidelity Digital Assets

Fidelity Digital Assets offers a full-service enterprise-grade platform for securing, trading and supporting digital assets. A business of Fidelity Investments, Fidelity Digital Assets combines the operational and technical capabilities of the broader Fidelity organization with dedicated blockchain expertise to deliver a completely new offering for institutional investors. Learn more at http://fidelitydigitalassets.com

About Zodia

Zodia is a cryptocurrency custodian for institutional investors. Combining Standard Chartered’s deep, multi market expertise as a trusted custodian of traditional securities with the agility of a fintech we provide secure and innovative custody services to help institutions navigate the complex world of crypto. Zodia is in the process of registering with the FCA under UK Money Laundering Regulations and we expect to launch commercially in the second half of 2021.

Please visit our website and follow us on LinkedIn.

About Flow Traders

Flow Traders is a leading global financial technology-enabled liquidity provider in financial products, historically specialized in Exchange Traded Products (ETPs), now expanding into other asset classes. Flow Traders ensures the provision of liquidity to support the uninterrupted functioning of financial markets. This allows investors to continue to buy or sell ETPs or other financial instruments under all market circumstances. We continuously grow our organization, ensuring that our trading desks in Europe, the Americas and Asia can provide liquidity across all major exchanges, globally, 24 hours a day. Founded in 2004, we continue to cultivate the entrepreneurial, innovative and team-oriented culture that has been with us since the beginning. Please visit www.flowtraders.com for more information.