TP ICAP enters crypto business to trade bitcoin futures

TP ICAP, the largest interdealer broker in the world, is opening its digital doors to bitcoin trading with the launch of its Digital Asset Markets business.

As per its press release, the broker will initially operate in the cryptoasset derivatives space and provide over-the-counter liquidity for the Chicago Mercantile Exchange’s bitcoin futures and plans to expand to include a bitcoin non-deliverable forward contract tied to the largest cryptocurrency.

“We have been closely monitoring the development of this emergent asset class and recognize the transformational effect that the underlying technology could have on our industry,” Frits Vogels, CEO TP ICAP EMEA, said.

ICAP’s new venture will initially run from London, with plans of expanding its trading desks to Asia and the United States.

“We believe that cryptoassets are only a subset of a wider universe of digital assets that could be created through the use of this technology, and that the tokenisation of value could have application across multiple traditional asset classes,” Vogels said.

TP ICAP is also reportedly looking at other potential opportunities in the digital asset sector.

A report from Bloomberg pointed out that to access the firm’s services, customers are required to comply with Know Your Client (KYC) and Anti-Money Laundering (AML) protocols. It also revealed that TP ICAP is considering other digital assets, including altcoins and tokenized assets.

Meanwhile, crypto futures exchanges Bakkt recently announced that it will begin testing its first product, physically delivered bitcoin futures on July 22, listing two future contracts including a daily settlement bitcoin and a monthly bitcoin futures contract.