The infrastructure gap in digital assets is getting filled.@DuncanTrenholme, Managing Director and Global Co Head of Digital Assets, announced @TPICAPGroup’s next milestone for Fusion Digital Assets at@Consensus_HK.Fusion is transitioning to a Matched Principal model in March, investment-grade credit backing, custodian-agnostic settlement and multilateral netting.The trusted framework TradFi already runs on, now for crypto. ...

The infrastructure gap in digital assets is getting filled. @DuncanTrenholme, Managing Director and Global Co Head of Digital Assets, announced @TPICAPGroup’s next milestone for Fusion Digital Assets at @Consensus_HK.Fusion is transitioning to a Matched Principal model in March, investment-grade credit backing, custodian-agnostic settlement and multilateral netting.The trusted framework TradFi already runs on, now for crypto. ...

The infrastructure gap in digital assets is getting filled. @DuncanTrenholme, Managing Director and Global Co Head of Digital Assets, announced @TPICAPGroup’s next milestone for Fusion Digital Assets at @Consensus_HK. Fusion is transitioning to a Matched Principal model in March, investment-grade credit backing, custodian-agnostic settlement and multilateral netting.The trusted framework TradFi already runs on, now for crypto. [Partner Content] ...

Core Viewpoint - TP ICAP will restructure its institutional crypto venue, Fusion Digital Assets, to operate under a matched principal model starting March 2026, enhancing transaction efficiency and reducing counterparty risk [1][6]. Group 1: Structural Changes - The new matched principal model will have TP ICAP act as a counterparty for both buyers and sellers, settling transactions off-exchange without requiring pre-funded accounts [2][6]. - This model mirrors the firm's existing operations in foreign exchange swaps, interest rate derivatives, and credit markets, where it intermediates without taking market risk [2][3]. Group 2: Rationale for Change - Fusion Digital Assets was initially launched in 2022 as an agency-style venue, but the need to mitigate counterparty risk and capital tie-up led to the shift towards a matched principal model [4][5]. - The collapse of FTX in November 2022 heightened concerns regarding exchange-based models, prompting institutional risk committees to reassess their exposure [5]. Group 3: Regulatory Context - TP ICAP operates under UK regulatory oversight and has an investment-grade credit profile, which supports the transition to matched principal trading in the crypto space [7]. - The move aligns with tightening digital asset regulations in Europe and the UK, including the EU's Markets in Crypto-Assets framework and Basel Committee guidance on capital treatment for bank exposure to cryptoassets [8]. Group 4: Implications for Institutional Trading - The matched principal model enhances capital efficiency for banks, hedge funds, and asset managers by consolidating exposure to a single regulated intermediary [10][12]. - The shift is expected to improve liquidity management and reduce operational overhead associated with pre-funded exchange balances [11][12]. Group 5: Market Structure Redefinition - By adopting a matched principal trading structure, TP ICAP is positioning crypto spot trading within the framework of wholesale markets, contrasting with retail exchanges that rely on pre-funded margin accounts [14][15]. - This change highlights the growing divide between retail crypto infrastructure and institutional market design, leveraging established practices from global FX and fixed income markets [15].