The landscape of digital asset trading is evolving rapidly as traditional financial giants deepen their involvement in the cryptocurrency ecosystem. In a landmark move, TP ICAP — the world’s largest interdealer broker — has announced a strategic collaboration with Fidelity Digital Assets and Zodia Custody, a digital asset custody platform backed by Standard Chartered and Northern Trust. This new venture aims to launch a regulated crypto trading platform by December, marking a significant step toward institutional integration of digital assets.
This development underscores the growing momentum among institutional investors seeking secure, compliant, and efficient access to cryptocurrencies like Bitcoin and Ethereum. As demand surges, the need for robust infrastructure that separates execution, settlement, and custody has become paramount — a gap this new platform intends to fill.
A New Model for Institutional Crypto Trading
The upcoming platform will offer a modular trading infrastructure featuring independent execution, settlement, and a network of regulated digital asset custodians. This separation is considered critical for attracting risk-averse institutional players who require clear regulatory oversight and reduced counterparty risk.
“In the past six to eight months, investor interest in this new asset class has surged dramatically. Across most of our client conversations, there’s a strong preference to decouple regulatory-compliant custody from trading execution — a model that contrasts sharply with existing platforms,” said Duncan Trenholme, Co-Head of Digital Assets at TP ICAP.
Unlike many current crypto exchanges where trading and custody are bundled — increasing credit and operational risk — this new solution aligns more closely with traditional financial markets. By mirroring the structure used in equities, bonds, and foreign exchange, the platform aims to make crypto trading more familiar and accessible to institutional participants.
FlowTraders, a leading liquidity provider based in Amsterdam, will support the platform by supplying market-making services, ensuring tight spreads and deep order books from launch.
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Focus on Compliance and Regulatory Clarity
One of the biggest hurdles for mainstream finance entering crypto has been regulatory uncertainty. The new platform is currently awaiting approval from UK financial regulators, signaling its commitment to operating within a formal compliance framework.
Notably, neither Standard Chartered nor Fidelity has taken an equity stake in the venture, emphasizing their role as infrastructure partners rather than investors. This arrangement allows them to provide essential services — custody through Zodia Custody and execution support via Fidelity Digital Assets — without exposing themselves to direct platform risk.
Zodia Custody itself was launched in December as a joint initiative between Standard Chartered and Northern Trust, combining banking-grade security with blockchain-native technology. Its integration into the TP ICAP platform reinforces trust and scalability for institutional clients.
Expanding TP ICAP’s Capital Markets Footprint
This initiative is part of TP ICAP’s broader strategy to expand its presence in global capital markets through innovation in data, analytics, and new product offerings. Having previously facilitated Bitcoin futures and options on CME in 2019, the firm is now exploring additional derivatives such as total return swaps and non-deliverable forwards (NDFs) for future rollout.
These instruments are particularly attractive to institutions looking to gain exposure to crypto price movements without holding the underlying assets — a crucial feature for funds with custodial or compliance constraints.
As inflows into dedicated crypto investment funds reach record highs year-to-date, major banks are balancing rising client demand against persistent compliance challenges and intensifying scrutiny from regulators worldwide. The TP ICAP-led platform represents a measured, infrastructure-first approach designed to meet these dual demands.
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Core Keywords Driving Market Transformation
This development highlights several key themes shaping the future of digital finance:
- Institutional crypto trading
- Digital asset custody
- Regulated cryptocurrency platforms
- Bitcoin and Ethereum trading
- Crypto derivatives
- Market infrastructure
- Blockchain financial services
- Fintech innovation
These keywords reflect both user search intent and the underlying trends driving adoption: security, regulation, interoperability with traditional finance, and scalable technology.
Frequently Asked Questions (FAQ)
Q: Who is behind the new cryptocurrency trading platform?
A: The platform is being developed by TP ICAP in partnership with Fidelity Digital Assets and Zodia Custody — the latter being a joint venture between Standard Chartered Bank and Northern Trust.
Q: Which cryptocurrencies will be available at launch?
A: Initially, the platform will support Bitcoin trading, with plans to add Ethereum — the second-largest cryptocurrency — at a later stage.
Q: Is this platform already operational?
A: No, the platform is still pending regulatory approval from UK financial authorities and is expected to go live by December.
Q: How does this platform reduce risk for institutional investors?
A: It separates trading execution from settlement and custody — a structure aligned with traditional financial markets — thereby minimizing counterparty and credit risk.
Q: Will Standard Chartered or Fidelity invest in the platform?
A: No. Both institutions are providing infrastructure services but are not taking equity stakes in the platform.
Q: What role does FlowTraders play?
A: FlowTraders will act as a liquidity provider, ensuring stable pricing and deep market depth through professional market-making activities.
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The Road Ahead for Institutional Crypto Adoption
The entry of established financial intermediaries like TP ICAP, Fidelity, and Standard Chartered into the crypto space signals a maturing market. Rather than chasing speculative trends, these institutions are focusing on building foundational infrastructure — the kind needed for long-term sustainability and broad adoption.
As regulatory frameworks continue to evolve across jurisdictions, platforms that prioritize compliance, transparency, and integration with existing financial systems will lead the next phase of growth. The collaboration between TP ICAP, Fidelity, and Zodia Custody exemplifies this shift: not just entering crypto, but reshaping it to meet institutional standards.
For investors and market participants, this means safer onboarding processes, improved price discovery, and greater confidence in digital asset markets. While challenges remain — including global regulatory fragmentation and cybersecurity concerns — initiatives like this lay the groundwork for a more resilient and inclusive financial ecosystem.
With record capital inflows into crypto funds and growing interest from pension funds, insurers, and asset managers, 2025 could mark a turning point where digital assets become a routine component of diversified portfolios — not as speculative bets, but as legitimate financial instruments backed by trusted institutions.