The FTSE 250 stockbroker said the new platform will allow trading of digital assets including Bitcoin and Ethereum and will also provide post-trade infrastructure for digital asset custodians
Group PLC () said it is planning to launch a cryptocurrency trading platform with the necessary box-ticking functions for its institutional clients.
The FTSE 250 inter-dealer broker said the new platform will allow trading of digital assets including Bitcoin and Ethereum and will also provide connectivity and post-trade infrastructure for digital asset custodians.
ICAP’s first move into digital assets was in 2019 to allow clients to trade cryptoasset derivatives products, but the company said the new platform “significantly expands” its footprint in this fast-growing market.
“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”, ’s co-head of digital assets Simon Forster said in a statement.
“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”, he added.
TP ICAP said the platform, which will be a collaboration with Fidelity Digital Assets, ()’s Zodia Custody subsidiary and Flow Traders, has already started to onboard clients and will launch in the second half of the year.
By the time of launch additional liquidity providers will join Flow Traders and additional custody partners as well as Zodia.
“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,” said Andrew Polydor, TCAP’s global head of markets.
He said it will be based on mature trading technology developed by GMEX Technologies, with the function of providing spot liquidity in digital assets as well as access to multiple custodians via a bespoke post-trade solution being “key requirements” for institutional clients.
The company’s shares climbed 1% to 205.9p in mid-morning trading on Tuesday.