Capital markets News

TP ICAP goes live with Fusion Digital Assets trading platform

TP ICAP digital assets

Today TP ICAP, the world’s largest interdealer broker, announced that the first cryptocurrency trade was processed on its Fusion Digital Assets platform. 

The institutional platform segregates the transaction process in a similar way to conventional financial markets, with separate providers performing trade execution, custody and settlement. Last year it received approval as a crypto exchange from UK regulator, the FCA.

The first trade was Bitcoin against US dollars, and it will also support Ether initially. Fidelity Digital Assets is the first custodian supported, with plans to add more.

“Combining independent and segregated custody with an FCA-registered cryptoasset exchange helps to shape the future of cryptoasset market infrastructure,” said Simon Forster, Global Co-Head of Digital Assets at TP ICAP Group. “Add TP ICAPs liquidity and distribution capabilities and we are uniquely positioned to service clients’ needs.”

The Fusion solution aggregates liquidity from market makers as well as the TP ICAP’s client base. Some of the liquidity providers onboarded include FlowTraders, XBTO Global and DLT Finance.

GMEX as technology partner

TP ICAP partnered with digital assets technology provider GMEX. It is using several GMEX tools, including its market surveillance solution and a post trade platform to enable connectivity to multiple custodians. It provides netting and settlement of trading activity.

At a technical level, the GMEX solution also supports several custodians, including Standard Chartered’s Zodia Custody and Nomura joint venture Komainu.  

Last year GMEX acquired Pyctor from ING. Pyctor provides a multiparty computation (MPC) network to enable the institutional settlement of digital assets.

GMEX CEO Hirander Misra said about the TP ICAP launch, “This will lay strong foundations for the digital assets sector as the platform meets the increasing demand from institutional customers to access liquidity and trade spot cryptoassets, with the security that is provided by institutional grade prefunding and settlement by multiple custodians which is enabled by credible regulations.”

Meanwhile, on the other side of the pond, FINRA has granted its first specialist crypto for a broker/dealer to provide custody. Yesterday Prometheum announced it was the licensee, and it also segregates activities in a traditional manner. However, it doesn’t quite have the reach of TP ICAP.