TP ICAP Gains UK Registration for Institutional Crypto Exchange

TP ICAP’s wholesale exchange for crypto assets, Fusion Digital Assets, has registered with the Financial Conduct Authority (FCA), allowing the platform to operate in the United Kingdom.

Announced on Thursday, TP ICAP is yet to launch its crypto exchange services though it confirmed the upcoming services in mid-2021. It will cater to institutional market participants only and will be operated by Tullett Prebon (Europe) Limited.

“Despite growing demand from our traditional client base, until now, the wholesale digital assets market has lacked the credible infrastructure and assurance necessary for them to allocate capital. Fusion Digital Assets addresses this need,” said TP ICAP Group’s Co-Head of Digital Assets, Duncan Trenholme.

“Its distinct attributes – namely a segregated model, TP ICAP’s track record of operating venues, and our means to distribute – are well recognized and trusted by institutional market participants.”

An Institutional Platform

TP ICAP is using its proprietary OTC electronic platform, Fusion, which will offer non-custodial services for order matching and trade execution with cryptocurrencies. In addition, it partnered with Fidelity Digital Assets for custodial services.

Known for being the largest inter-dealer broker, TP ICAP’s entry into the digital asset space would provide legitimacy in the crypto market when it is reeling with controversy. It gained the license when FTX, once a major cryptocurrency exchange, collapsed within days when the shady business practices of its Founder and former CEO, Sam Bankman-Fried, surfaced.

The extension of the FCA’s authority over the UK’s cryptocurrency market has mandated all crypto businesses operating in the country to register with the regulator. However, the registration process that started before the pandemic remains slow. FCA’s CEO, Nikhil Rathi, recently revealed that around 85 percent of crypto firms failed FCA’s registration process.

“Over time, we believe blockchain will lead to the tokenization of traditional asset classes. This will result in a more efficient, automated, and risk-mitigated trading and settlement process for financial markets. Fusion Digital Assets positions us well to grasp the opportunities that this change will bring,” Trenholme added.