FTSE Russell, the company behind the benchmark index of the U.K. stock market, is planning the development of a crypto index containing 43 digital assets, according to a report from London-based business newspaper City AM, published on Monday.
The index will “sit alongside” the FTSE 100 and Russell 2000, said Kristen Mierzwa, the head of exchange-traded fund (ETF) strategy and business development for the FTSE Russell.
FTSE Russell is a subsidiary of the London Stock Exchange that produces market indices.
“Right now we’ve got 43 assets which have made their way through the vetting process,” Mierzwa said. “This was clearly becoming a market that people wanted data around.”
The index will be U.K. and EU compliant, and its vetting process would screen out the vast majority of the 11,000 known cryptos. Stablecoins and even meme-based coins, such as dogecoin, could be added, Mierzwa confirmed.
The news represents a welcomed endorsement for cryptocurrencies from the U.K.’s mainstream financial world that is often more conservative in its messaging. Bank of England governor Andrew Bailey, for example, has issued warnings about the potential threat of crypto to financial stability in recent weeks.