IG Group, a traditional financial services firm listed on the FTSE, has announced that it will allow UK retail investors to trade cryptocurrencies starting in March. Through a partnership with the Uphold platform, the brokerage will offer access to 38 digital assets—including Bitcoin, Ethereum, Solana, Dogecoin, and DogWifhat—making it the first London Stock Exchange-listed company to provide spot token trading.
This move highlights the growing interest among traditional investors in gaining direct exposure to crypto assets. IG’s initiative aims to serve this demand while leveraging its established reputation in equities and spread betting.
How IG’s Crypto Trading Service Works
IG is collaborating with Uphold, a specialized cryptocurrency platform, to handle custody and order execution. Under this arrangement:
- Uphold will safeguard the digital assets and process transactions.
- All trades will be conducted on a full-capital basis without leverage.
- Funds held with Uphold will not be protected under the UK’s Financial Services Compensation Scheme (FSCS).
This model allows IG to enter the market quickly while relying on a partner with robust crypto infrastructure.
Why IG Is Entering the Crypto Market
Michael Healy, Managing Director of IG UK, noted that customer demand has “reached a tipping point.” Recent surveys support this:
- Approximately 12% of UK adults now own cryptocurrencies, up from just 4% in 2021.
- Awareness of crypto has risen to 93% among UK adults.
By offering cryptocurrency trading, IG aims to retain existing clients who might otherwise migrate to competing platforms like Revolut, eToro, or Coinbase. The service will be integrated into IG’s familiar trading interface, providing a seamless experience for current users.
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Regulatory Context in the UK
The UK government recently proposed new regulations to integrate cryptocurrencies into existing financial frameworks. These rules focus on:
- Enhancing consumer protection.
- Preventing market abuse.
- Aligning capital requirements with traditional assets.
Chancellor Rachel Reeves emphasized that these measures are designed to boost investor confidence. The Financial Conduct Authority (FCA) is also refining technical standards for digital asset services.
IG’s decision to partner with Uphold reflects a broader trend among financial institutions. Rather than developing in-house crypto solutions, many are choosing to collaborate with specialized providers to reduce operational risks and accelerate market entry.
The Growing Crypto Market
Global cryptocurrency market capitalization now approaches $3.3 trillion, with Bitcoin trading around $105,000. As institutional and retail adoption increases, traditional firms are recognizing crypto as a legitimate asset class.
IG’s launch is a significant milestone, indicating that established financial players are adapting to evolving investor preferences.
Frequently Asked Questions
What cryptocurrencies can I trade with IG?
IG offers 38 cryptocurrencies, including major tokens like Bitcoin and Ethereum, as well as altcoins such as Solana, Dogecoin, and DogWifhat.
Is my cryptocurrency protected under the FSCS?
No. Assets held with Uphold are not covered by the Financial Services Compensation Scheme. Ensure you understand the risks before trading.
Can I use leverage for crypto trading on IG?
No. All cryptocurrency trades are executed on a full-capital basis without leverage.
Why did IG partner with Uphold?
IG chose to collaborate with Uphold to leverage its expertise in custody and execution, reducing development time and operational risk.
How does IG’s crypto service compare to competitors?
IG integrates crypto trading into its existing platform, offering a familiar interface for current users. However, unlike some competitors, it does not provide leverage or FSCS protection for crypto holdings.
Is cryptocurrency trading safe in the UK?
While the UK is implementing stronger regulations, crypto trading remains inherently volatile. Always conduct thorough research and consider your risk tolerance.
Conclusion
IG Group’s entry into the cryptocurrency market signals a maturation of the industry and reflects rising investor interest. By partnering with Uphold, IG can offer crypto trading while navigating regulatory complexities. This development marks another step toward the integration of digital assets into mainstream finance.
As the landscape evolves, both new and experienced traders should stay informed about regulatory changes and platform offerings.