World’s Largest Broker Enters Crypto Space Amid FTX Debacle: Details

The world’s largest brokerage firm TP ICAP has obtained a cryptoasset provider license from the UK Financial Conduct Authority (FCA), the company said on Thursday. The broker has entered the crypto market with its Fusion Digital Assets marketplace. This comes at a time as the collapse of crypto exchange FTX triggers a cascading effect on crypto firms such as brokerage firm Genesis, lender BlockFi, exchange Gemini, and others.

TP ICAP Receives Crypto Exchange License in the UK

TradFi giant TP ICAP Group received approval from the UK FCA to register as a cryptoasset exchange provider, reported Reuters on December 1. The broker’s Fusion Digital Assets will offer clients access to a non-custodial cryptoasset exchange for order matching and spot crypto trading.

The company is working with custodian Fidelity Digital Assets to safeguard customers’ crypto assets and settlement services. TP ICAP’s crypto exchange platform will enable only institutional investors to trade crypto assets. It will be operated by its unit Tullett Prebon Ltd., which is registered in the FCA’s crypto company register since November 21.

Duncan Trenholme, co-head of digital assets at TP ICAP Group, said:

“Until now the wholesale digital assets market has lacked the credible infrastructure and assurance necessary for financial market players to allocate capital.”

He believes blockchain will lead to the tokenization of traditional asset classes, recognizing the value of a digital assets market. Moreover, it will make financial processes efficient and automated, as well as risk-mitigated trading and settlement. The entry of the industry leader in broking services across commodities, credit, equities, and FX asset classes to help improve the crypto market infrastructure.

The TP ICAP plans to work with several custodians to enable segregated interoperable custody services for its clients. The move comes as Britain’s Financial Authority (FCA) called on lawmakers to show support for its decision not to grant licenses to crypto exchanges such as FTX.

FTX Contagion Spreads to Crypto Companies

FTX contagion has risked several crypto companies on the brink of collapse. Crypto lender BlockFi has even filed for bankruptcy due to its exposure to FTX. Moreover, Genesis and Gemini are at liquidity risk due to their exposure to FTX.

Furthermore, FTX and Alameda Research intertwined accounts and loans are under scrutiny by prosecutors. Experts claim FTT tokens created by the crypto exchange as the reason behind the collapse.