TP ICAP is transitioning its spot cryptoasset exchange, Fusion Digital Assets, to a matched principal trading model, as the interdealer broker looks to enhance capital efficiency and counterparty confidence for institutional participants.
The change, set to take effect in March 2026, will see TP ICAP act as intermediary between buyers and sellers, becoming the counterparty to both sides of each transaction. The structure mirrors trading models already used by the firm across foreign exchange, rates and credit markets.
Specifically, the move is expected to align digital asset execution with institutional demand for risk-managed and capital-efficient frameworks in traditional wholesale markets, while addressing persistent concerns around counterparty exposure and settlement risk in crypto trading.
Under the matched principal setup, trades will be backed by TP ICAP’s investment-grade credit profile, allowing clients to execute transactions without pre-funding requirements, while settlement will take place off-exchange.
Simon Forster, managing director and global co-head of digital assets at TP ICAP, said: “This proven model is familiar to institutional clients and delivered by a counterparty they trust. It fills a critical gap in the crypto landscape by improving efficiency, reducing risk, and creating a flexible, institution-ready framework for trading.”
The transition is also expected to support further expansion of Fusion Digital Assets’ product universe, including additional major cryptoassets, stablecoins, new fiat currency pairs and tokenised real-world assets.
Moreover, operating hours on the platform will extend from 23/5 to 24/5 trading, with weekend coverage planned as institutional demand increases.