TP ICAP's Fusion Digital Assets to Launch Stablecoin Trading After Record $1 Billion Monthly Volume

Executive Summary

TP ICAP's Fusion Digital Assets platform will introduce stablecoin trading pairs in early 2025, following a record-breaking September that saw its monthly trading volume exceed $1 billion, signaling robust institutional engagement in digital assets.

The Event in Detail

TP ICAP's Fusion Digital Assets, a UK Financial Conduct Authority-regulated spot crypto exchange that went live in 2024, is set to introduce stablecoin trading pairs in the first half of next year. This strategic expansion follows a period of significant growth for the platform, which recorded a monthly trading volume surpassing $1 billion in September. This figure represents a fivefold increase compared to the same period a year prior, with an average monthly growth rate of 85% over the past 12 months. The platform currently supports trading in Bitcoin (BTC) and Ethereum (ETH) against the US dollar. TP ICAP is also actively building out its digital asset business in the US and Asia and plans to extend the operating hours of Fusion Digital Assets to meet growing client demand.

Deconstructing the Financial Mechanics and Business Strategy

Fusion Digital Assets operates as a non-custodial cryptoasset exchange, facilitating order matching and trade execution while partnering with industry-leading custodians for the independent safekeeping of client inventories and settlement services through a segregated model. Initially launched with custody provided by Fidelity Digital Assets, the platform announced in October 2024 that clients would also gain access to Standard Chartered's digital asset custody. The firm is actively working to connect Standard Chartered's digital asset custody platform to Fusion Digital Assets to expand its client universe.

The introduction of stablecoin trading pairs is a strategic move to reduce friction and drive volume on the exchange, as stablecoins are expected to make "cash on-chain" mainstream within the next 12 months. Stablecoins enable 24/7/365 value transfer in digital finance, offering stability by pegging their value to reference assets like fiat currencies. TP ICAP's approach emphasizes a regulatory focus, aligning with institutional preferences for traditional players that adhere to similar standards, particularly through the crucial separation of execution and custody.

Market Implications

The expansion by TP ICAP's Fusion Digital Assets into stablecoin trading underscores a broader trend of increasing institutional adoption and maturation within the digital asset market. The global market capitalization of stablecoins already exceeded $200 billion as of early 2025. This move is expected to enhance institutional liquidity and trading activity, particularly for key digital assets like Bitcoin and Ethereum, and further integrate digital assets into traditional financial markets.

A survey conducted by Coinbase in collaboration with EY-Parthenon indicated that 86% of 352 institutional investors had exposure to digital assets in January 2025 or planned to allocate during the year. Nearly 70% viewed cryptocurrencies as the most significant opportunity for attractive risk-adjusted returns. The study also highlighted growing participation in decentralized finance (DeFi), with engagement expected to triple from 24% to 74% in two years. This indicates a sustained appetite for a broader set of digital assets beyond Bitcoin and Ethereum, including Ripple (XRP) and Solana (SOL).

Broader Context

The digital asset industry has seen significant growth, with the total crypto market capitalization reaching a record US$4.3 trillion in early October 2025, marking a 91% year-over-year increase. Crypto trading volumes have also surged, with activity across centralized exchanges hitting a yearly peak of US$9.72 trillion in August 2025, a 7.58% month-over-month increase. Derivatives trading constituted a substantial portion of this activity, jumping 7.92% to US$7.36 trillion and accounting for 75.7% of all centralized exchange activity.

Simon Forster, global co-head of digital assets at TP ICAP, characterized 2024 as a "watershed" year for the digital assets industry, citing significant Bitcoin ETF inflows as evidence of pent-up demand. The US Securities and Exchange Commission's approval of spot Bitcoin ETFs in early 2024 led to 12 ETFs attracting nearly $36 billion in aggregate flows. The continued evolution of an intermediated market and the clarity provided by the repeal of SAB 121 are further paving the way for traditional custodians to engage more deeply with digital assets. TP ICAP's consistent approach over the past five years and developed relationships position it to capitalize on increasing traditional financial institution engagement with crypto in 2025 and beyond.