TP ICAP is changing how its institutional crypto exchange handles trades, moving to a model that puts the London-based broker in the middle of every transaction, a structure already well-established in its traditional markets operations.

The company said this week that Fusion Digital Assets will switch to a so-called matched principal model in March, under which TP ICAP stands as counterparty to both sides of each trade. The change eliminates the need for clients to pre-fund their positions: institutions will be able to trade first and settle afterward, freeing up capital that would otherwise sit idle waiting for a deal to clear.

Bringing a Traditional Markets Playbook to Crypto

The matched principal setup is hardly new for TP ICAP. The firm already runs the model across its foreign exchange, rates, and credit markets businesses, processing more than $200 trillion in notional volume through it in 2025. What's different now is that Fusion Digital Assets - launched for spot crypto trading back in May 2023 after the firm secured a UK license the year before - is getting the same treatment.

Under the new structure, each trade will be backed by TP ICAP's investment-grade credit rating. Settlement will move off-exchange, with the firm acting as counterparty on the clearing side. Clients will also be free to use whichever digital asset custodian they prefer - a deliberate design choice to avoid locking institutions into a single custody relationship.

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Simon Forster, managing director and global co-head of digital assets at TP ICAP, said the shift addresses a persistent structural problem in institutional crypto trading. "This proven model is familiar to institutional clients, 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."

Volume Growth Adds Pressure to Expand

The timing reflects real momentum on the platform. Fusion Digital Assets crossed $1 billion in monthly notional volume in September last year, with activity concentrated in spot Bitcoin and Ether. That figure gave TP ICAP a concrete data point to justify expanding what the platform offers.

Once the matched principal model is in place, the company plans to roll out stablecoins, additional major cryptoassets, new fiat currency pairs, and tokenized real-world assets. Operating hours will also extend from the current 23 hours a day, five days a week, to full 24/5 coverage, with weekend trading possible as demand grows.

The platform will also introduce multilateral netting, a mechanism common in traditional markets that allows multiple offsetting positions to settle as a single net obligation rather than as individual trades, cutting both cost and settlement risk.

Expansion Accelerates Across TP ICAP's Business Lines

The Fusion overhaul is part of a broader push by TP ICAP across its operations. In January, the firm acquired Vantage Capital Markets to deepen its Asia-Pacific footprint, with Vantage's offices in Hong Kong, Tokyo, and Dubai expected to close into TP ICAP's network in Q2 this year. Earlier this month, the group also brought electronic trading to structured products, building a centralized order book for a corner of the market that had historically relied on phone-based negotiation.

The digital assets arm has been a bright spot for the group. TP ICAP's most recent revenue report showed £1.78 billion at the top line, though weakness in the firm's energy and commodities unit has weighed on overall results. Crypto infrastructure, by contrast, has continued to attract institutional attention as more banks and asset managers look for exchange-grade venues that offer the compliance and counterparty standards they're used to in traditional markets.

Forster framed the model change as more than just an operational upgrade. "This marks a transformational step in Fusion Digital Asset's development. It reflects our commitment to delivering trusted, efficient market infrastructure for the digital asset ecosystem."