TP ICAP is changing how its institutional crypto exchangehandles trades, moving to a model that puts the London-based broker in themiddle of every transaction, a structure already well-established in itstraditional markets operations.The company said this week that Fusion Digital Assets willswitch to a so-called matched principal model in March, under which TP ICAPstands as counterparty to both sides of each trade. The change eliminates theneed for clients to pre-fund their positions: institutions will be able totrade first and settle afterward, freeing up capital that would otherwise sitidle waiting for a deal to clear.Bringing a Traditional Markets Playbook to CryptoThe matched principal setup is hardly new for TP ICAP. Thefirm already runs the model across its foreign exchange, rates, and creditmarkets businesses, processing more than $200 trillion in notional volumethrough 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 licensethe year before - is getting the same treatment.Under the new structure, each trade will be backed by TPICAP's investment-grade credit rating. Settlement will move off-exchange, withthe firm acting as counterparty on the clearing side. Clients will also be freeto use whichever digital asset custodian they prefer - a deliberate designchoice to avoid locking institutions into a single custody relationship.Simon Forster, managing director and global co-head ofdigital assets at TP ICAP, said the shift addresses a persistent structuralproblem in institutional crypto trading. "This proven model is familiar toinstitutional clients, delivered by a counterparty they trust. It fills acritical gap in the crypto landscape by improving efficiency, reducing risk,and creating a flexible, institution-ready framework for trading."Volume Growth Adds Pressure to ExpandThe timing reflects real momentum on the platform. FusionDigital Assets crossed $1 billion in monthly notional volume in September lastyear, with activity concentrated in spot Bitcoin and Ether. That figure gave TPICAP a concrete data point to justify expanding what the platform offers.Once the matched principal model is in place, the companyplans to roll out stablecoins, additional major cryptoassets, new fiat currencypairs, and tokenized real-world assets. Operating hours will also extend fromthe current 23 hours a day, five days a week, to full 24/5 coverage, withweekend trading possible as demand grows.The platform will also introduce multilateral netting, amechanism common in traditional markets that allows multiple offsettingpositions to settle as a single net obligation rather than as individualtrades, cutting both cost and settlement risk.Expansion Accelerates Across TP ICAP's Business LinesThe Fusion overhaul is part of a broader push by TP ICAPacross its operations. In January, the firm acquired Vantage Capital Markets to deepenits Asia-Pacific footprint, with Vantage's offices in Hong Kong, Tokyo, andDubai expected to close into TP ICAP's network in Q2 this year. Earlier thismonth, the group also brought electronic trading to structured products, buildinga centralized order book for a corner of the market that had historicallyrelied on phone-based negotiation.The digital assets arm has been a bright spot for thegroup. TP ICAP's most recent revenue report showed £1.78billion at the top line, though weakness in the firm's energy and commoditiesunit has weighed on overall results. Crypto infrastructure, by contrast, hascontinued to attract institutional attention as more banks and asset managerslook for exchange-grade venues that offer the compliance and counterpartystandards they're used to in traditional markets.Forster framed the model change as more than just anoperational upgrade. "This marks a transformational step in Fusion DigitalAsset's development. It reflects our commitment to delivering trusted,efficient market infrastructure for the digital asset ecosystem."This article was written by Damian Chmiel at www.financemagnates.com.