IG Group, an investment platform, has made a significant move by becoming the first publicly-listed firm and London-listed brokerage in the United Kingdom to offer spot cryptocurrency trading directly to its retail investors. This new service, which reportedly launched around June 3rd, marks an expansion of IG's offerings, which previously confined crypto exposure to derivatives products like contracts for difference (CFDs).

The new crypto trading capability allows IG's customers to gain direct access to a range of 38 digital assets, including prominent cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). This integration into IG's existing multi-asset platform, which customers use for trading shares, FX, and commodities, is facilitated through a strategic partnership with U.S.-based crypto-focused fintech firm Uphold. Uphold will be responsible for both custody and execution of the crypto trades.

Investors should be aware that assets held via the Uphold platform are not protected under the UK’s Financial Services Compensation Scheme (FSCS). According to Michael Healy, IG U.K. managing director, the launch is driven by a tipping point in customer demand, with traditional account holders increasingly seeking direct exposure to digital assets. In line with current regulatory caution in the UK regarding crypto derivatives for retail clients, the platform will support fully paid positions only, meaning no leverage will be offered for these crypto trades.

This development by IG Group highlights the increasing integration between traditional finance (TradFi) and the digital asset space, reflecting a growing expectation from investors and traders. The London-based firm's initiative also coincides with the ongoing development of the U.K.'s plans to establish a comprehensive regulatory regime for the crypto industry. The government has already published consultation papers on draft legislation concerning activities such as crypto trading and stablecoin issuance.

By introducing spot crypto trading for retail users, IG Group positions itself at the forefront of providing regulated access to digital assets in Britain. This move is seen as setting a precedent for other financial institutions that may be considering bridging the gap between traditional financial services and the evolving world of cryptocurrencies.