In a landmark move, UK-based financial services provider IG Group has expanded its cryptocurrency offerings to retail investors, now allowing spot trading in 31 digital assets. This pivot marks a significant milestone not just for IG Group, but also for the broader UK crypto ecosystem—a sector increasingly gaining legitimacy amid evolving regulatory frameworks. While the United Kingdom continues to refine its approach to digital currencies, this expansion signals a strategic alignment between traditional financial institutions and decentralized asset markets.
This article explores the implications of IG Group’s new offering, the state of crypto regulation in the UK, the role of its strategic partner Uphold, and what this all means for retail investors.
IG Group’s Spot Crypto Expansion: What Has Changed?
From CFDs to Spot Trading
Historically, IG Group Holdings plc (LON: IGG) provided cryptocurrency exposure primarily through Contracts for Difference (CFDs)—derivative instruments that allow traders to speculate on the price movements of assets without actually owning them. CFDs have long been popular among UK traders because of their flexibility and lower capital requirements.
However, CFDs on crypto assets have faced scrutiny from regulators. In January 2021, the UK’s Financial Conduct Authority (FCA) banned the sale of crypto derivatives to retail consumers, citing high risk, extreme volatility, and lack of reliable valuation models [1].
In response, IG Group has launched a spot crypto trading service, enabling customers to directly buy and sell actual cryptocurrencies rather than just speculating on price movements. This evolution broadens access and appeals to a growing segment of investors looking for long-term crypto exposure.
Supported Cryptocurrencies
IG Group now supports 31 digital assets, including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Cardano (ADA)
- Solana (SOL)
- Dogecoin (DOGE)
- BONK
- Other altcoins and meme coins
The inclusion of both top-tier and trending assets is designed to meet the preferences of both conservative and speculative traders.
Seamless Access Across Platforms
The new crypto trading capability is available across:
- IG’s main trading platform
- The IG Invest mobile app
Retail investors can now seamlessly transition between different asset classes—from forex to equities to crypto—under a unified interface.
Partnership with Uphold: Custody and Liquidity
A significant component of this expansion is IG Group’s partnership with Uphold, a U.S. and UK-regulated digital currency platform.
Role of Uphold
Uphold will serve three primary functions:
- Liquidity Provider: Uphold will supply live market pricing data for all supported cryptocurrencies.
- Transaction Execution: All crypto trades initiated on IG’s platform will be processed through Uphold’s backend.
- Custody Provider: Uphold will act as the custodian, holding clients’ digital assets in cold storage to maximize security.
This partnership provides an added layer of trust and regulatory compliance, addressing common investor concerns related to hacks, mismanagement, or asset inaccessibility.
UK Regulatory Developments: Stablecoins and Beyond
The FCA’s role in shaping the UK’s crypto landscape is crucial. On May 28, 2025, the regulator issued a public call for feedback on proposed new rules for stablecoins and crypto custodial services [2].
Key Proposals
The FCA outlined the following initiatives:
- Firms offering stablecoins must clearly disclose the asset reserves backing each coin.
- Custodial service providers must adhere to new operational risk management and auditing standards.
- A collaborative framework is being established between the FCA and the Bank of England to ensure holistic oversight.
These regulatory changes aim to protect consumers, prevent systemic risks, and encourage innovation. Stakeholders, including the general public, have until July 31, 2025, to submit their comments on the proposals.
Stablecoin Support, But No National Bitcoin Reserve
While the UK government shows openness to stablecoins—owing to their “predictable value” and “low volatility”—it has publicly distanced itself from creating a national Bitcoin reserve. Economic Secretary to the Treasury Emma Reynolds confirmed in a recent parliamentary briefing that the idea of adding Bitcoin to the UK’s sovereign reserves is not being considered [3].
This distinction underscores the UK’s cautious but progressive stance on crypto regulation: enabling innovation while managing systemic risks.
Implications for Retail Investors
Increased Accessibility
The shift from derivatives to spot trading means more people can now engage in direct crypto ownership without resorting to decentralized exchanges or complex wallets. This enhances transparency and gives traders true exposure to the underlying assets.
Regulatory Clarity and Safety
Thanks to the FCA’s oversight and the use of a regulated partner like Uphold, investors can operate with greater confidence. Asset custodianship by a regulated entity significantly reduces the risk of fraud or loss.
Integration with Traditional Finance
By incorporating crypto trading into its existing platforms, IG Group is effectively normalizing digital assets as part of diversified investment strategies. This reflects a broader trend where digital currencies are being treated similarly to stocks, ETFs, and forex.
Market Response and Competitive Landscape
IG Group’s Strategic Advantage
IG Group’s move positions it as one of the few traditional UK financial firms offering fully integrated spot crypto trading. While fintech apps like Revolut and eToro offer similar features, IG brings a legacy of credibility, a robust compliance framework, and established customer trust.
Competitor Activity
Other firms are beginning to take note:
- HSBC has filed patents related to blockchain-based payment systems [4].
- Barclays is rumored to be piloting a blockchain-based bond issuance program [5].
However, no major UK bank has yet offered direct spot trading to retail investors at the scale IG Group has achieved.
The Road Ahead: What to Expect
Potential Institutional Adoption
While the UK government remains wary of state-level Bitcoin investment, growing institutional interest suggests that more asset managers and family offices may start allocating funds to crypto.
FCA’s Role in Shaping the Future
If the proposed stablecoin regulations are implemented, the UK could become one of the most compliant yet innovation-friendly crypto hubs globally. This may attract foreign exchanges and startups seeking regulatory clarity.
IG Group’s Growth Prospects
This strategic move could help IG Group:
- Attract a younger demographic
- Increase user retention through diversified services
- Compete more aggressively with neobanks and global fintech apps
Conclusion
IG Group’s launch of spot crypto trading for 31 digital assets is a defining moment for the UK’s financial and digital asset markets. It symbolizes the blending of traditional finance with emerging technologies and reinforces the UK’s ambitions to become a leader in responsible crypto adoption.
While questions about a state-level Bitcoin reserve remain firmly answered in the negative, the broader regulatory and institutional landscape in the UK is evolving in favor of consumer protection, innovation, and expanded access.
As other legacy institutions watch closely, IG Group may have just set the tone for the next wave of crypto adoption in Europe.
References
- Financial Conduct Authority. (2021). FCA bans the sale of crypto-derivatives to retail consumers. https://www.fca.org.uk/news/press-releases/fca-bans-sale-crypto-derivatives-retail-consumers
- FCA. (2025). FCA publishes proposals for regulating stablecoins. https://www.fca.org.uk/news/statements/fca-proposals-crypto-asset-regulations
- UK Treasury. (2025). Emma Reynolds addresses crypto policy. https://www.gov.uk/government/speeches/crypto-assets-and-uk-policy-direction
- CoinDesk. (2024). HSBC files blockchain patent. https://www.coindesk.com/business/2024/04/25/hsbc-files-blockchain-patent/
- Reuters. (2024). Barclays tests blockchain bond issuance. https://www.reuters.com/technology/barclays-tests-tokenized-bonds-2024-05-12/
