FCA grants Blackrock crypto asset firm status, Galaxy Digital's derivatives approval
UK Regulator approves BlackRock, Galaxy Digital for crypto operations
The UK Financial Conduct Authority (FCA) has granted approval for BlackRock to operate as a crypto asset firm, marking a significant milestone in the nation’s evolving digital asset landscape.
BlackRock is now authorized to arrange transactions and sales related to exchange-traded products (ETPs) issued by iShares Digital Assets AG, backed by crypto assets. Notably, this approval enables BlackRock to launch its European spot Bitcoin ETP, although the product remains accessible solely to institutional and professional investors due to existing FCA restrictions.
With only 51 firms on the FCA’s crypto asset register and an approval rate of roughly 14%, BlackRock’s inclusion underscores its robust compliance capabilities. Additionally, BlackRock’s iShares Bitcoin ETP, listed earlier this month on major European exchanges, follows the success of its U.S. spot Bitcoin ETF, IBIT, which has generated over $40 billion in cumulative net inflows since January 2024.
Market implications and forward outlook
In a parallel move, Galaxy Digital has secured a derivatives trading license for its UK subsidiary, further cementing London’s role as a hub for crypto innovation. The FCA’s authorization permits Galaxy Digital to expand its derivatives trading operations from its London office, as well as offer capital raising and investment banking services through its investment banking arm. Galaxy Europe CEO Leon Marshall hailed the approval as a pivotal achievement that will enable the firm to deliver innovative trading solutions while upholding the highest regulatory standards. Marshall noted that the FCA’s stable and forward-thinking regulatory framework is attracting innovation, investment, and top talent to the region.
These recent regulatory milestones illustrate a broader shift toward enhanced institutional involvement in the cryptocurrency market. As both BlackRock and Galaxy Digital expand their crypto operations in the UK, industry observers will closely monitor how these developments influence market dynamics and regulatory practices going forward.
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