Largest Broker TP ICAP Will Launch Crypto Exchange With Fidelity, Standard Chartered

What Happened: The world’s largest interdealer broker TP ICAP Group PLC (LON: TCAP), plans to launch a digital asset exchange after partnering with Standard Chartered PLC (LON: STAN) and Fidelity Investments.

According to a report from Reuters, the platform will allow institutional investors to trade Bitcoin BTC/USD. The support for the second-largest cryptocurrency by market cap Ethereum ETH/USD will be added later.

The new platform aims to “make crypto trading akin to that of traditional assets like stocks, bonds, and foreign exchange.”

The consortium stated that the new platform would offer post-trade infrastructure with a network of digital asset custodians and separate execution and settlement, which is seen as “key to greater involvement of larger risk-averse investors” in the emerging crypto market.

Standard Chartered’s Zodia Custody will serve as the digital asset custodian to the platform, while Amsterdam-based Flow Traders will act as its liquidity provider.

“Investor interest in this new asset class has exploded dramatically in the last six to eight months,” said Duncan Trenholme, co-head of digital assets at TP ICAP.

“In most of our conversations with clients, they want a separation of custodial roles from execution capabilities which is opposite to the models that exist currently.”

Read also: 'More Institutional Volume Than We Anticipated': CME Micro Bitcoin Futures Contracts Cross 1M

TP ICAP was instrumental in institutional Bitcoin derivatives trading, as the broker was responsible for launching Bitcoin futures and options on the CME Group Inc (NASDAQ: CM) in 2019.

The platform is currently awaiting approval from U.K. financial regulator, the Financial Conduct Authority (FCA), before commencing operations.

Price Action: At press time, leading digital asset Bitcoin was trading at $36,088, up 5.01% in the past 24-hours.