IG Group, a London-listed broker, is set to revolutionize the cryptocurrency trading landscape in the United Kingdom. As of June 3, retail investors will have access to trade 38 different cryptocurrencies on IG Group’s multi-asset platform, making it the first of its kind in the region to offer spot tokens.
This groundbreaking initiative is made possible through a strategic partnership with digital asset exchange Uphold, which will provide custody and execution services for the traded cryptocurrencies. It’s important to note that assets held with Uphold are not covered by the Financial Services Compensation Scheme, and trading will be limited to fully paid positions with no leverage.
IG Group’s decision to venture into the world of cryptocurrencies comes at a time when customer demand is skyrocketing. Managing director of IG U.K., Michael Healy, highlighted that traditional account holders are increasingly seeking direct exposure to popular cryptocurrencies like Bitcoin, Ethereum, as well as emerging altcoins such as Solana, Dogecoin, and DogWifhat.
This move by IG Group aligns with the recent regulatory developments in the cryptocurrency space. The launch of this cryptocurrency trading feature follows the Treasury’s publication of a draft rulebook aimed at bringing cryptocurrencies under existing market abuse, consumer protection, and capital regimes. Chancellor Rachel Reeves emphasized that this regulatory framework would enhance investor confidence and protect consumers.
The surge in public participation in the cryptocurrency market is evident from a Financial Conduct Authority survey, which revealed that 12% of U.K. adults, approximately seven million people, currently own digital assets. This marks a significant increase from 4.4% in 2021, with awareness levels standing at an impressive 93%.
In response to the growing demand for cryptocurrency trading options, established brokerages like Revolut and eToro have already incorporated retail crypto channels, while Coinbase operates as a standalone platform. By integrating cryptocurrency trading into their spread-bet and equities platform, IG Group aims to retain clients who might otherwise switch to challenger apps.
Outsourcing custody to Uphold reflects a broader trend among financial firms looking to offer digital assets without the need to build their own wallet infrastructure. This approach allows brokers to manage market risk and expedite time-to-market, especially as the Financial Conduct Authority finalizes technical safeguarding rules.
As the cryptocurrency market continues to gain momentum, with a total capitalization of around $3.3 trillion and Bitcoin stabilizing around $105,000, mainstream brokers are increasingly viewing cryptocurrencies as a legitimate asset class rather than a speculative investment.
While IG Group’s foray into cryptocurrency trading presents new opportunities for investors, there are considerations to bear in mind. Clients trading cryptocurrencies on IG Group’s platform will not have access to leverage and will be responsible for the full tax implications of their gains. Additionally, the absence of deposit protection should be clearly communicated to clients, and the Financial Conduct Authority is expected to refine capital and safeguarding requirements for firms holding client assets in crypto.
Overall, IG Group’s entrance into the cryptocurrency market signifies a significant shift towards mainstream adoption in the UK. With regulatory frameworks taking shape and millions of Britons already holding cryptocurrencies, 2025 is poised to be the year when digital assets firmly establish themselves within the regulated financial landscape.