M&G Investments has led a $30 million seed round in the digital asset trading startup Global Futures and Options (GFO-X) in anticipation of its upcoming launch.
GFO-X is set to introduce a digital asset derivatives marketplace tailored for institutional investors. In May, the company established a partnership with the London Stock Exchange clearing house LCH, facilitating secure settlements through its new, segregated central counterparty clearing service, LCH DigitalAssetClear.
Corentine Poilvet-Clédière, CEO of LCH SA, expressed enthusiasm about collaborating with GFO-X to deliver a regulated marketplace for bitcoin index futures and options. “We aim to expand our services to become a truly international clearing house, and we look forward to launching this service to support the safe growth of this asset class as demand from institutional participants increases,” she stated.
Jeremy Punnett, a portfolio manager at M&G, highlighted the challenges posed by the lack of regulated trading venues, which hinder the growth of the crypto derivatives market. “The UK has the potential to become a global hub for crypto asset technology and investment, making London an ideal location for GFO-X’s new trading venue. This investment will allow GFO-X to scale its operations as investors transition from unregulated to regulated venues,” he noted.
Arnab Sen, CEO of GFO-X, emphasized that the integration of digital assets into mainstream finance necessitates support from traditional market infrastructures. “The long-term viability of digital assets and the digitization of tangible assets require careful collaboration between established market players and innovative newcomers. Having a long-term capital partner like M&G is vital as we work on developing the next generation of global financial market infrastructure for digital assets,” he stated.