How does ig store your crypto assets

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Last updated: April 8, 2026

Quick Answer: IG does not store crypto assets directly for clients, as it primarily offers crypto derivatives like CFDs rather than direct cryptocurrency ownership. Instead, IG uses segregated client funds held with regulated banks and partners with institutional custodians for asset security, with specific details varying by jurisdiction. For example, in the UK, client funds are protected up to £85,000 under the Financial Services Compensation Scheme (FSCS), and IG has been regulated since 1974, with crypto offerings expanding in recent years like the 2021 launch of crypto indices.

Key Facts

IG was founded in 1974 and is regulated by authorities like the FCA in the UK, with crypto derivatives introduced more recently.
IG primarily offers crypto CFDs and indices, not direct cryptocurrency storage, with assets held via segregated accounts and third-party custodians.
Client funds are protected up to £85,000 in the UK under the FSCS, with specific protections varying by region like EU or US regulations.
IG uses institutional-grade security measures, including cold storage and encryption, for any crypto-related assets through partners.
In 2021, IG expanded crypto offerings with indices tracking multiple cryptocurrencies, reflecting growing demand in derivatives markets.

Overview

IG is a UK-based financial services company founded in 1974, originally as IG Index, specializing in derivatives trading like spread betting and contracts for difference (CFDs). It has grown into a global firm regulated by authorities such as the Financial Conduct Authority (FCA) in the UK, with operations in over 15 countries. In recent years, IG has expanded into cryptocurrency markets, but unlike crypto exchanges (e.g., Coinbase), it does not offer direct cryptocurrency ownership or storage. Instead, IG provides crypto derivatives, such as CFDs on Bitcoin and Ethereum, allowing clients to speculate on price movements without holding the underlying assets. This approach aligns with IG's history in leveraged trading, with crypto products gaining traction post-2017 as demand surged. For context, IG reported over 239,000 active clients worldwide in 2023, with crypto contributing to its diversified portfolio amid regulatory shifts like the EU's MiCA framework.

How It Works

IG stores crypto assets indirectly through a multi-layered security and custody system. When clients trade crypto CFDs, IG does not purchase or hold the actual cryptocurrencies; instead, it uses client funds (deposited in fiat currencies like USD or EUR) in segregated accounts with regulated banks, such as Barclays or HSBC, to back the trades. For any crypto exposure, IG partners with institutional custodians, like Coinbase Custody or BitGo, which store cryptocurrencies in cold storage (offline wallets) to minimize hacking risks. The process involves encryption, multi-signature protocols, and regular audits to ensure asset safety. Clients access crypto markets via IG's trading platforms, where prices are derived from exchanges like Kraken or Binance, with IG acting as the counterparty to CFD trades. This method allows leverage (e.g., up to 1:2 for crypto in some regions) while complying with regulations, such as the FCA's 2021 rules restricting crypto derivatives to professional clients in the UK.

Why It Matters

IG's approach to crypto storage matters because it bridges traditional finance with emerging digital assets, offering regulated access without the complexities of direct ownership. This reduces risks like exchange hacks or loss of private keys, as seen in incidents like the 2014 Mt. Gox breach. By using derivatives, IG enables hedging and speculation in volatile crypto markets, with global crypto CFD volumes exceeding $1 trillion monthly in 2023. It also supports financial inclusion, as clients in regions with restrictive crypto laws can participate via IG's licensed services. However, this model has downsides: clients miss out on potential benefits of holding cryptocurrencies, such as staking rewards, and face counterparty risk with IG. Overall, IG's system highlights how established firms adapt to crypto trends, balancing innovation with investor protection in a rapidly evolving sector.