Fidelity Digital Assets will help launch an innovative cryptocurrency trading platform. The project is by leading market infrastructure provider TP ICAP, which will soon launch a cryptocurrency trading platform.
It will do this by partnering with Fidelity, Zodia Custody and Flow Traders.
The platform will be used for both cryptocurrency trading and asset custody.
Fidelity Digital Assets’ role in the crypto platform
In fact, Fidelity Digital Assets and Zodia Custody are in charge of the custody service, a service that is increasingly requested by cryptocurrency users. The innovation is that users of the platform will have liquidity to trade and at the same time know that their assets are under custody. This makes the platform particularly suitable for the needs of institutional investors.
Flow Traders, on the other hand, will take care of liquidity provision.
TC ICAP has already been active since 2019 as a cryptocurrency derivatives platform, now instead it is also opening up to the spot market to meet the demands of users at this historic time of crypto market growth.
The trading platform will be launched in London, with the necessary licenses required by the FCA. The idea is to expand also with an office in New York and then in Asia.
Simon Forster, Co-Head of Digital Assets at TP ICAP, said:
“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. This poses challenges from a conflict of interest perspective and results in fragmented liquidity. Our partnership, and resultant new platform, is a natural evolution in market structure that will make digital assets, such as Bitcoin, more accessible for the wholesale market”.
Michael Lie, Head of Digital Asset Trading at Flow Traders added:
“We are delighted to be partnering with TP ICAP as a liquidity provider on this new platform. As the #1 market maker in cryptocurrency ETPs, as well as being a leading spot OTC liquidity provider, we have seen first-hand the increase in institutional interest in cryptoassets. We have long been in favour of initiatives such as this that will make the crypto space more accessible for investors”.
Andrew Polydor, Global Head of Markets at TP ICAP, said:
“This platform will provide our global client base with the trading infrastructure, connectivity, surveillance, and market standards they require as a minimum across traditional markets whilst also recognising the nuances of this new asset class. It leverages mature trading technology developed by our partners GMEX Technologies, to provide spot liquidity in digital assets as well as access to multiple custodians via a bespoke post-trade solution. These are key requirements for our institutional clients who want to be able to trade, invest and safely access this growing area of the market”.
Chris Tyrer, Head of Fidelity Digital Assets in Europe, said:
“Collaborating with industry leaders like TP ICAP to bring to market innovative solutions that strengthen the digital assets ecosystem is critical to enabling even more institutional participation. 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”.
Maxime de Guillebon, CEO of Zodia Custody concluded:
“Zodia and TP ICAP share the same vision of the future of crypto asset investing. By combining liquidity with institutional-grade custody we will create an ecosystem that complements the expectations of institutional investors in terms of segregation of duties and asset safety. This infrastructure will enable operational efficiency and speed of transaction without compromising on security or reliability”.