Marex
Terry Hollingsworth
02 September 2025
As institutional appetite for digital assets reaches unprecedented levels, clearing firms are racing to provide regulated access to cryptocurrency markets while managing traditional finance requirements. Terry Hollingsworth, global head of futures and OTC clearing sales at Marex, discusses how the firm is positioning itself at the intersection of TradFi and DeFi
Image: Terry Hollingsworth
We are seeing unprecedented institutional interest in digital assets. What is driving this surge?
The numbers speak for themselves. CME Group reported record average daily volume of 198,000 cryptocurrency contracts in January, marking a 180 per cent year-over-year increase with approximately US$13.6 billion in notional value traded daily. Meanwhile, Bitcoin and Ethereum-based ETF investments have reached US$136 billion this year despite recent market volatility, and they are poised to overtake precious metals as the third-largest ETF asset class.
This reflects a fundamental shift — institutional investors are increasingly viewing digital assets as a legitimate and necessary portfolio component. The regulatory clarity we have seen through frameworks like MiCA in the EU and similar initiatives in Asia Pacific has been building for years, but the pro-crypto stance of the new US administration has accelerated adoption significantly.
How is this dual demand from traditional finance and crypto-native firms reshaping the market?
We are seeing fascinating convergence. Traditional financial institutions want diversification through digital assets, while crypto-native market makers increasingly seek regulated products to hedge their exposures and align with institutional standards. This dual demand is driving the need for trusted intermediaries to bridge traditional and digital financial markets.
Simultaneously, innovations from decentralised finance are shaping traditional finance structures. Stablecoins, originally designed for on-chain stability, gained popularity for on and off-ramping from crypto-native exchanges. Today, firms are exploring their use in payment systems to reduce costs and improve efficiency. Financial giants like J.P. Morgan have created their own stablecoin-like products for automated payments and streamlined inter-bank settlement.
You mention DeFi innovations influencing traditional markets. Can you elaborate on specific examples?
Perhaps DeFi's most dramatic impact has been spurring major exchanges to consider 24-hour trading windows. Cryptocurrency markets never close, drawing attention to growing retail demand for out-of-hours trading. The US Íø±¬³Ô¹Ï and Exchange Commission (SEC) approved the US's first 23-hour exchange last year, Cboe announced plans for 24-hour equity trading five days a week, and the New York Stock Exchange’s Arca equities venue has signalled similar shifts.
We are also seeing exploration of tokenised real-world assets for improved collateral mobility. Both Euroclear and the Commodity Future Trading Commission (CFTC) recently announced tokenised collateral initiatives exploring how blockchain could improve margining processes. During the 2022 UK gilt crisis, pension schemes had to liquidate assets to meet unexpected margin calls, contributing to downward market pressure. Tokenisation could enable firms to use high-quality assets as collateral without liquidation, improving capital allocation and market resilience.
How has Marex positioned itself to serve this evolving market?
As a non-bank Futures Commission Merchant (FCM), we pride ourselves on addressing market gaps with innovative offerings and serving underserved client segments. This approach has enabled significant growth — as of November 2024, Marex is the largest non-bank FCM in the US with over US$8.5 billion in client funds.
We have worked to address capacity constraints, becoming the first non-bank IRS clearer on LCH and supporting the FMX Futures Exchange launch. These initiatives provided valuable additional clearing capacity where FCM numbers have been steadily declining, while expanding our US product offering and enabling new cross-margining opportunities.
What specific crypto derivatives innovations has Marex supported?
We cleared the first-ever Bitcoin Friday Futures block trade and the first-ever Bitcoin Friday Futures options trade on CME. Bitcoin Friday Futures, recognised as the most successful cryptocurrency futures launch in CME history, represent a significant step toward integrating crypto-native trading structures into institutional markets.
Sized at one-fiftieth of a Bitcoin, this product supports broader market access while maintaining institutional-grade standards. The weekly expirations, lower margin requirements and improved cost predictability enable more efficient capital allocation in what can be a particularly volatile market.
Beyond CME, we are a clearing FCM for Bitcoin and Ethereum futures on Coinbase Derivatives Exchange and CBOE, providing broker-agnostic clearing services across multiple exchanges with the highest regulatory and risk management standards.
How are you supporting institutional clients beyond clearing?
We are providing market making and liquidity services for crypto ETFs and other derivatives, plus delivering customised hedging products through our financial products team. Our structured product options, including the Bitcoin Cash and Carry Certificate and 12-month USD Tracker Certificate, provide institutional traders with diversified digital asset exposure and reliable secondary market liquidity.
We recently announced a collaboration with WisdomTree providing institutional investors with tailored exposure to WisdomTree's ETPs via Marex-issued structured products. These initiatives combine the best of traditional and decentralised finance, coupling crypto market exposure with flexible structured products that provide formal downside protection for managing volatility and risk.
What is your outlook for blockchain's role in finance's future?
We expect blockchain solutions will be a core feature of finance's future, helping markets overcome inefficiencies and opening valuable new opportunities. The innovations we are seeing today in tokenised assets, automated settlement, and 24-hour trading are just the beginning.
As DeFi continues inspiring innovations within traditional finance, Marex will continue seeking a leading role in market evolution, ensuring our clients have access to best-in-class execution, clearing and hedging strategies across both traditional and emerging asset classes. The convergence is accelerating, and we are committed to serving this exciting new era with industry-leading expertise and institutional-grade solutions.
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