The largest brokerage firm in the world, TP ICAP, has been granted a license by the UK Financial Conduct Authority (FCA) to provide cryptoasset providers. This was announced on Thursday. With its Fusion Digital Assets marketplace, the broker has entered into the crypto market. This is at a time when the collapse of crypto exchange FTX triggers a cascading impact on crypto firms like brokerage firm Genesis, lender BlockFi and exchange Gemini.
TP ICAP receives a Crypto Exchange License in the UK
Reuters reported that TradFi giant TP ICAP Group was approved by the UK FCA for registration as a cryptoasset trading platform provider. Fusion Digital Assets, the broker’s cryptoasset exchange, will provide clients with access to spot and order matching.
To protect customers’ crypto assets and provide settlement services, the company is partnering with Fidelity Digital Assets, a custodian. Only institutional investors will be able to trade crypto assets on TP ICAP’s crypto-exchange platform. It will be managed by Tullett Prebon Ltd. which is registered in FCA’s crypto company registry since November 21.
Duncan Trenholme is co-head of digital assets for TP ICAP Group.
“Until now, the wholesale digital asset market has not had the infrastructure and assurance that financial market players need to allocate capital.
He believes that blockchain will enable tokenization of traditional asset types, recognising the value of a digital market. It will also make financial processes more efficient and automated, and allow for risk-mitigating trading and settlement. The industry leader in broking services across commodities and credit equities and FX asset types will help to improve the crypto market infrastructure.
The TP ICAP will work with several custodians in order to provide segregated interoperable custody services to its clients. This move comes as the Financial Authority of Britain (FCA), called for lawmakers to support its decision not grant licenses to crypto-exchanges like FTX.
Crypto Companies are Hit by FTX Contagion
FTX contagion has put several crypto companies at risk of collapse. BlockFi, a crypto lender, has filed for bankruptcy because of its exposure to FTX. Moreover, Genesis & Gemini are at liquidity-risk due to their exposures to FTX.
Prosecutors are also investigating the intertwined accounts of FTX and Alameda Research loans and accounts. Experts believe that the cause of the collapse was FTT tokens, which were created by the crypto exchange.
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