Financial giants like Fidelity Investments and Standard Chartered are all set to expand their footprint in the crypto space. The two giants will back the world’s biggest interdealer broker – TP ICAP – in launching a crypto trading platform and offer their own crypto custodial solutions.
The latest move comes amid rising institutional interest in the crypto space. The ICAP crypto trading platform will be launched in the second half of 2021 and will initially allow Bitcoin (BTC) trading with the option of adding Ethereum (ETH) later on.
Alike to stocks, bonds, and foreign exchange, TP ICAP is planning to bring a similar experience to the crypto world. In a statement to Reuters, the consortium said that the TP ICAP crypto trading platform will offer a post-trade infrastructure through a network of digital asset custodians.
It will have separate execution and settlement facility to attract risk-averse investors to the crypto space. This will be different from the existing approach wherein crypto trading and custodial solutions are rolled up in one venue. The consortium has joined hands with Amsterdam-based Flow Traders who will provide the liquidity to the platform. Speaking to Reuters, Duncan Trenholme, co-head of digital assets at ICAP, said:
“Investor interest in this new asset class has exploded dramatically in the last six to eight months. 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.”
Banking Giants Join the Crypto Space
“When you can’t beat them, you join them” that’s exactly what is happening with the traditional banking space. A lot of banking giants have shown interest in joining the crypto space in one or another way.
Another good thing is that with banks joining the crypto space, it will bring more legitimacy to the overall market. The latest move is a big endorsement from Standard Chartered. Earlier this month, the banking giant’s venture capital unit said it will set up a different crypto brokerage and exchange platform in Europe and Britain, in partnership with Hong Kong’s BC Technology Group.
The TP ICAP platform is quite well acquainted with the crypto space. Back in 2019, the broker launched Bitcoin futures and contracts on CME. Now it plans to launch additional derivative products including total return swaps and non-deliverable forwards.