Global Futures and Options (GFO-X), a digital assets trading platform, has successfully concluded a $30 million Series B funding round, with M&G Investments playing a pivotal role. GFO-X, licensed by the UK’s Financial Conduct Authority, caters to global institutional investors seeking to trade digital asset futures and options cleared at the London Stock Exchange Group’s Paris clearing arm, LCH SA.
Strategic Investment to Propel GFO-X Launch and Foster Sector Innovation
The substantial funding, predominantly provided by M&G Investments, is expected to support GFO-X through its upcoming launch and drive future innovation within the regulated digital asset sector. GFO-X Holdings highlighted the strategic significance of the investment in a statement, emphasising its potential to enhance trust and credibility in the market.
M&G Investments’ Role and Vision for London as a Crypto Hub
M&G Investments, a part of M&G Plc, will secure a seat on the board of GFO-X Holdings as a result of its leading role in the funding. Jeremy Punnett, portfolio manager at M&G, expressed concerns about the growth of the crypto derivatives trading market due to the lack of regulated trading venues. Punnett sees the UK, particularly London, as having the potential to become a global hub for crypto asset technology and investment.
Regulation-First Approach for Institutional Trust
GFO-X aims to address the unmet needs of large global institutional participants by providing a safe and regulated trading venue for digital asset derivatives at scale. The platform adopts a ‘regulation first’ approach, earning trust and credibility with major institutions.
Strategic Partnership with LCH SA for Clearing Services
In April 2023, GFO-X entered into a strategic partnership with LCH SA, the Continental European clearing house of the London Stock Exchange Group. LCH SA is set to introduce a new segregated central counterparty clearing service, LCH DigitalAssetClear, subject to regulatory approval. This service focuses on counterparty credit, risk management, and settlement needs in the evolving digital asset derivatives market.
Powerful Collaboration: GFO-X and LCH SA
The partnership leverages GFO-X’s deep understanding of the digital asset market, optimised contract specifications, and high-performance technology, combined with LCH SA’s extensive client base and proven risk management capabilities. The goal is to provide a unique and powerful service offering as institutional products in the digital asset space continue to develop.
Long-Term Vision for the Digital Asset Ecosystem
Arnab Sen, CEO of GFO-X, stressed the importance of evolving regulations to bring digital assets into mainstream finance. He emphasised the necessity for collaboration between traditional market participants and modern innovators to build a regulated financial market ecosystem for digital assets. Sen highlighted the significance of having a patient, long-term capital partner like M&G as they work towards creating the next generation of global financial market infrastructure for digital assets.
Corentine Poilvet-Clédière, CEO of LCH SA, expressed excitement about working with GFO-X to provide a regulated marketplace for Bitcoin index futures and options. This collaboration aligns with LCH SA’s broader goal of expanding services to become a truly international clearing house, ensuring the safe growth and development of the digital asset class in response to increasing demand from institutional market participants.