Finance Magnates has learned that Nukkleus Capital, a boutique brokerage firm based in the US, is going to be launching an over-the-counter (OTC) cryptocurrency trading desk.
Along with its OTC trading desk, Nukkleus Capital is also going to be launching a cryptocurrency exchange, NukkX, in the first quarter of this year. And as with the OTC trading desk, NukkX looks like it will be targeting the institutional market.
“We are trying to bridge the gap between the institutional world and the retail crypto world,” Joe Tuccio, Global Head of Digital Asset Management at Nukkleus Capital, told Finance Magnates. “If we can help build a streamlined product that replicates other financial markets offerings, I feel this market will flourish and mature.
“The recent commitments of major institutions like Bakkt, ICE, Fidelity and ErisX demonstrate that a formidable foundation of this new asset class is being soundly laid which will bring confidence to traditional capital market participants to deepen digital asset liquidity across products.”
Tuccio to lead the crypto charge
It’s Tuccio that Nukkleus Capital’s Chairman, Emil Assentato, is going to be counting on to develop the firm’s new cryptocurrency business. Tuccio was previously Head of Business Development for cryptocurrency settlements firm, Noble Bank. He also has twelve years of experience in the institutional FX trading world.
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“I am excited to join the Nukkleus team,” said Tuccio. “We are seeing an abundance of top institutional firms joining the space and we intend to bring experience and knowledge to help grow and enhance the market.”
And according to Tuccio, NukkX will be connecting to some “top market makers” to ensure it has adequate liquidity.
The brokerage’s new OTC desk will also be looking to attract clients from the different companies that make up the buy-side of the financial services industry. That means hedge funds, asset managers, family offices and high net worth individuals will all be in the cross-hairs of Nukkleus Capital’s business development team.
In order to assuage the fears that many institutional players have when it comes to cryptocurrency, Nukkleus Capital will also be using technology company Prime Trust to provide in house custodial services.
“We are excited to be bringing more institutional players to the digital asset markets,” said Tuccio. “We believe this market is here to stay and the technology behind it will reshape financial markets for years to come.”