M&G Investments has led a $30 million seed round in digital asset trading startup Global Futures and Options (GFO-X) ahead of its forthcoming go-live.
GFO-X is preparing for the launch of a digital asset derivatives marketplace for institutional investors. In May, the firm secured an agreement with London Stock Exchange clearing house LCH for secure settlement via its new, segregated central counterparty clearing service, LCH DigitalAssetClear.
Corentine Poilvet-Clédière, CEO, LCH SA says: “LCH SA is excited to be working with GFO-X, together with the industry, to provide a regulated marketplace for bitcoin index futures and options as we look to expand our services to become a truly international clearing house. We look forward to the launch of the service, ensuring the safe growth and development of this asset class as demand from institutional market participants grows.”
M&G portfolio manager, Jeremy Punnett, says the lack of regulated trading venues is materially hampering the growth of the crypto derivatives trading market.
"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," he says. "This investment enables GFO-X to scale its operations as the business is set to benefit from investors shifting their trading from unregulated to regulated venues.”
Arnab Sen, CEO of GFO-X, say the transition of digital assets into mainstream finance will only happen with the support of traditional market infrastructures.
"The long-term viability of digital assets and the digitisation of real tangible assets requires careful collaboration between traditional market participants and modern innovators," he says. "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."