Broker TP ICAP is set to launch a cryptoassets trading platform for institutional investors later this year, a spokesman said.
The move is an extension to TP ICAP's digital assets business, which was set up in 2019 and enables investors to trade cryptoasset derivatives.
For the latest platform launch, TP ICAP will collaborate with Fidelity Digital Assets, part of Fidelity Investments, and Zodia Custody — which is run by SC Ventures, the innovation arm of bank Standard Chartered — to provide digital assets custody. TP ICAP also partnered with market maker Flow Traders to provide liquidity.
The launch of the London-based platform is dependent upon registration with the U.K. Financial Conduct Authority.
The firms have developed a new trading model where investors will be able to access liquidity at TP ICAP while their assets remain under custody at their chosen digital asset custodian, a news release Tuesday said. Investors can immediately trade cryptoassets on the platform at a current market rate and on a specified date, known as spot trading.
"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," Simon Forster, co-head of digital assets at TP ICAP, said in the release.
Chris Tyrer, head of Fidelity Digital Assets in Europe, added in the release: "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."
Separately on Tuesday, Deutsche Boerse Group said it acquired a two-thirds majority stake in financial group Crypto Finance, which offers trading, storage, and investment in digital assets to institutional and professional investors.
Deutsche Boerse's investment was in the three-digit million Swiss francs range, according to a spokesman.
As part of the deal, which is set to close in the fourth quarter, Deutsche Boerse will boost its digital assets post-trade services such as custody. Deutsche Boerse also intends to make Crypto Finance's offering easily accessible for market participants via its own established platforms.
"We are excited that Crypto Finance is joining the group. The team is an ideal strategic fit and will help us tremendously on our way to building a trusted and fully regulated digital asset ecosystem for institutional investors in Europe," Thomas Book, executive board member for trading and clearing at Deutsche Boerse, said in a news release.