TP ICAP is the latest firm to acquire a crypto license in the UK (United Kingdom). The London-based financial service provider is the largest interdealer-broker in the world. The firm has obtained approval from the Financial Conduct Authority to operate as a digital asset provider. To provide a platform for matching orders and carrying out spot crypto trades, TP ICAP is collaborating with custodian Fidelity Digital Assets.
Duncan Trenholme, co-head of digital assets at TP ICAP, believes that blockchain will eventually lead to the “tokenization of traditional asset classes.” Trenholme added that up until this point, the wholesale market for digital assets lacked the reliable foundation and certainty that allowed participants in the financial sector to allocate resources.
Since November 21st, the business has been listed on the FCA’s crypto company registration using its full name, Tullett Prebon (Europe) Ltd. The register certifies adherence to anti-money laundering laws while the U.K. Treasury considers a more comprehensive legal framework for crypto authorizations.
In January, TP ICAP stated that it provides clients a chance to trade crypto-related goods on exchanges, including investment banks.
Financial firms going big on crypto and tokenization?
Tokenization of assets is something that many financial institutions are interested in. The act of turning physical goods into digital tokens that can be traded on a blockchain is known as tokenization. This makes it easier to invest in and trade these assets, which helps the market become more liquid.
To put it plainly, tokenization is the process of transferring asset ownership rights as digital tokens into a blockchain. Both actual goods like precious metals, real estate, art, and other items, as well as intangible assets like intellectual property, can be tokenized by users. Additionally, it may also comprise financial instruments like bonds and stocks.
By using this technique, investors can directly own a fraction of the underlying real-world asset without having to purchase or manage the entire underlying asset.
BlackRock, the largest asset manager in the world, has also expressed its interest in the new emerging way of investing.