UK FCA Approves BlackRock and Galaxy Digital for Crypto Services

Global asset management giant BlackRock has received regulatory approval from the UK’s Financial Conduct Authority (FCA) to operate as a crypto asset firm. 

This decision allows BlackRock to facilitate transactions and sales of exchange-traded products (ETPs) issued by iShares Digital Assets AG, backed by crypto assets.

With this green light, BlackRock is gearing up to launch its European spot Bitcoin ETP in the UK, a move that could significantly reshape institutional crypto investment in the region. 

However, due to the FCA’s stringent regulations, these products will only be available to institutional and professional investors, leaving retail investors on the sidelines. 

This restriction aligns with the FCA’s cautious approach to consumer protection in the ever-volatile crypto space.

JUST IN: 🇬🇧 BlackRock officially registers as a crypto asset firm in the UK.

— Watcher.Guru (@WatcherGuru) April 1, 2025

BlackRock Joins the Race

BlackRock now joins an elite group of firms authorized by the FCA, becoming the 51st entity to receive approval since January 2020. 

The firm is listed alongside major industry players like Coinbase, MoonPay, and eToro, further solidifying its presence in the UK’s regulated crypto ecosystem.

Given the FCA’s notoriously high approval standards, granting licenses to only 14% of applicants, this approval shows BlackRock’s compliance prowess and strategic intent to expand its digital asset offerings.

The immediate implication is that BlackRock’s newly minted iShares Bitcoin ETF (IB1T) can now be offered to UK institutional investors. 

This approval could allow BlackRock to introduce a broader suite of crypto-related financial products, beyond Bitcoin ETPs, tailored to UK market demands. 

Notably, this announcement comes just a week after BlackRock launched IB1T in Europe via Xetra, Euronext Paris, and Euronext Amsterdam.

Galaxy Digital Joins the UK’s Institutional Crypto Expansion

In a parallel breakthrough for institutional crypto adoption, Galaxy Digital Holdings Ltd. has also secured FCA approval, allowing its subsidiary, Galaxy Digital UK Ltd., to offer derivatives trading from its London office. 

This move marks a strategic expansion for the New York-based financial services firm as it strengthens its presence in Europe’s evolving digital asset landscape.

We’re excited to share that Galaxy has received regulatory approval from the UK Financial Conduct Authority (FCA) to execute derivatives trading through our London-based entity, Galaxy Digital UK Ltd. This is a notable milestone that expands our global trading operations and…

— Galaxy (@galaxyhq) April 2, 2025

The FCA’s authorization enables Galaxy Digital UK to facilitate derivatives trading while also expanding its investment banking operations. 

Additionally, the firm will support its asset management business through fund distribution, reinforcing its commitment to institutional investors seeking exposure to crypto markets.

Leon Marshall, CEO of Galaxy Europe and Global Head of Sales, emphasized the significance of the approval, stating,

“London is a critical financial hub, and this authorization allows us to deepen our presence in the UK. We remain dedicated to integrating traditional financial services with digital assets, fostering broader institutional adoption.”

BlackRock and Galaxy Digital’s approvals highlight the UK’s shifting stance toward crypto-related financial services, signaling a more structured approach to institutional participation. 

While retail access remains restricted, these moves reflect a growing recognition of crypto assets as a legitimate component of the global financial system.