TP ICAP, Standard Chartered, Fidelity to launch crypto trading platform

TP ICAP, Standard Chartered, Fidelity to launch crypto trading platform

TP ICAP, the worlds largest interdealer broker, has announced recently that it is teaming with Standard Chartereds unit of digital assets custody and Fidelity Investments to build a trading platform for cryptocurrencies.

The platform, which is set to open in the second half of this year, will primarily allow institutional investors to trade bitcoin. Meanwhile ether, the second-largest cryptocurrency, will be added later.

TP ICAP, together with Zodia Custody and Fidelity Digital Assets, which were launched in December by Northern Trust and Standard Chartered's venture capital unit, seeks to make crypto trading similar to those of traditional assets such as shares, bonds, and foreign exchange.

According to the alliance, the platform would include post-trade infrastructure with a network of digital asset custodians, as well as independent implementation and settlement, which is widely considered as critical to attracting larger risk-averse investors to the budding crypto market.

TP ICAP has expanded its worldwide capital markets footprint by introducing new data and analytics services as well as new technologies. Dedicated crypto funds have received record inflows this year, but big banks that provide access must weigh growing interest with the long-standing compliance issues that have plagued the cryptocurrency sector, as well as increased regulatory scrutiny.

However, this change is the newest support to the industry by Standard Chartered, whose venture capital division stated this month that it will partner with Hong Kong's BC Technology Group to launch a new exchange platform and crypto brokerage in Britain and Europe.

Notably, in 2019, TP ICAP released bitcoin futures and opportunities on the CME, and it now intends to issue more derivatives such as total return swaps and non-deliverable forwards. According to TP ICAP, the platform is awaiting authorization from the financial regulator of Britain.

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