Capital markets News

M&G invests in UK regulated crypto derivative exchange GFO-X

M&G GFO-X cryptocurrency derivatives bitcoin

UK asset manager M&G Investments is leading a $30 million Series B funding round for Global Futures and Options (GFO-X), a regulated crypto derivative exchange. M&G’s Crossover strategy contributed $20 million of the investment and targets companies it expects to get listed (Crossover) on a public market in the future. The entire M&G group has assets under management of £342 billion ($429bn).

In April GFO-X announced a collaboration with London Stock Echange subsidiary LCH SA for centralized clearing of digital assets. Hence, GFO-X is targeting traditional institutional players (TradFi) at a global level.

GFO-X had planned to launch this quarter, but the launch of LCH DigitalAssetClear is still subject to regulatory approval.

 “The lack of regulated trading venues is materially hampering the growth of the crypto derivatives trading market,” said M&G Portfolio Manager, Jeremy Punnett. “The UK has the potential to become a global hub for crypto asset technology and investment, making London an excellent destination for GFO-X’s new global trading venue.”

The institutional offering will support 24/7 trading while marrying the benefits of centralized clearing – reduced counterparty risks and net settlement. It will start with Bitcoin index futures.

“The long-term viability of digital assets and the digitisation of real tangible assets requires careful collaboration between traditional market participants and modern innovators,” said Arnab Sen, CEO of GFO-X. “Having a patient long term capital partner such as M&G is crucial as we build the next generation of global financial market infrastructure for digital assets.” 

Image Copyright: kall1st0 / 123rf