Trading Shares for Bitcoins Now Available at London Stock Exchange

News and Analysis

Bitcoin became applicable as collateral margin for trades with shares and exchange traded funds at London Stock Exchange. This functionality is available for clientelle of First Global Credit as it announced listing of respective assets as available shares.

The company employs a derivative named TRS (total return swap) to sell or buy shares on behalf of its customers, and tranfers bitcoins to their accounts upon closure of positions.

In its official announcement First Global Credit states its platform has more than 1,300 registered customers with monthly trade volume reaching $2 million. The company also allows its customers to convert their bitcoin deposits into fiat without trade closing.

“Until recently, it has been difficult to find any option to turn bitcoin into a productive asset. Our clients have a distinct edge over other bitcoin holders because they can extract profit from their capital in two ways,” says First Global Communications Director Marcie Terman.

Founded in 2014 with headquarters in Geneva, FGC is managed from the UK. In April 2015 former executive director of Bitcoin Foundation Jon Matonis joined the company’s managing board.

“We already offer a good mix of tech, entertainment, internet and health care stocks and while we offer several ETFs which cover geographic growth areas like Brazil, Russia, China and Mexico, until now choices were limited to the American markets. First Global supports customers from all continents (excepting Antarctica) and it is our plan to offer equity trading from a wide range of countries starting with the United Kingdom, where we have a concentration of clients,” Terman says.

FGC is not the first cryptcocurrency-related company to operate at major stock exchanges. In May 2015, Nasdaq Stockholm launched trades with the world’s first bitcoin-based security, Bitcoin Tracker One, traded for Swedish krones. In early 2016, Nasdaq announced the first trade with shares issued on blockchain-based platform Linq for private capital markets.

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