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Fusion Digital Assets, TP ICAP's wholesale exchange for crypto assets, has registered with the Financial Conduct Authority (FCA), enabling the platform to function in the UK.
“Only institutional market participants will be served by it, and Tullett Prebon (Europe) Limited will run it. “Even though demand from traditional clients has increased, the wholesale digital assets market lacks the reliable infrastructure and certainty needed to invest capital,” according to Duncan Trenholme, co-head of digital assets at TP ICAP Group. ” This demand is met by Fusion Digital Assets.” he added.
The segregated methodology, TP ICAP's history of operating venues, and its distribution channels are some of its unique qualities, and institutional market participants are fully aware of and confident in them.
A platform for Institutional investors
For order matching and trade execution with digital assets, TP ICAP uses its own OTC electronic platform, Fusion, which provides non-custodial services. For custodial services, it collaborated with Fidelity Digital Assets.
Being the biggest inter-dealer broker, TP ICAP's foray into the world of digital assets would lend credibility to the crypto market at a time when it is rife with controversies. It obtained the license when the deceptive business practices of FTX's founder and former CEO, Sam Bankman-Fried, came to light, deflating the once-dominant cryptocurrency exchange within days.
All crypto-related enterprises doing business in the UK are required to register with the regulator as a result of the FCA's power being extended across the country's cryptocurrency market. The registration procedure, which began prior to the epidemic, is still cumbersome. Nikhil Rathi, CEO of FCA, recently disclosed that almost 85% of cryptocurrency firms failed FCA's registration process.
“We predict that traditional asset classes will eventually be tokenized as a result of blockchain technology. Financial markets will benefit from a more effective, automated, and risk-reduced trading and settlement procedure as a result of this. Fusion Digital Assets puts us in a good position to seize the opportunities that this transformation will present,” continued Trenholme.