(Read more: The yuan trading band has been widened—Now what?)
The U.K. capital has, until now, relied on Hong Kong establishments for renminbi clearing services. Hong Kong became the first offshore trading centre for the renminbi - or yuan – in 2009.
Trading in the renminbi has boomed over the last few years. In 2013 it hit $120 billion a day, according to the Bank for International Settlements, compared with a daily average of $4.65 trillion in the U.S. dollar.
"This continues a trend that China has been pursuing of setting up more locations where renminbi can be traded and cleared in order to promote the internationalization of the renminbi, so more trade and finance can be done in the currency," Michael Sneyd, forex analyst at BNP Paribas, told CNBC.
Earlier this month, China widened the yuan's trading range from 1 percent to 2 percent in a sign that it was willing to give financial markets more of role in determining the value of the currency.
(Read more: Investors shouldn't fret over Chinese yuan volatility)