The UK-based pension giant’s asset management arm, M&G Investments, has announced a $20 million investment in Global Futures & Options Holding (GFO-X), the nation’s inaugural regulated crypto derivatives exchange.
This funding is part of a $30 million Series B round and aims to establish a secure and regulated platform for traditional financial institutions to trade cryptocurrency derivatives.
GFO-X, in partnership with LCH SA, the London Stock Exchange’s clearing house, is the inaugural Financial Conduct Authority (FCA)-regulated trading venue for crypto derivatives.
This move aligns with expectations of a US-approved spot Bitcoin exchange-traded fund (ETF) boosting liquidity in the crypto market.
M&G’s investment supports the development of a global hub for trading and clearing digital asset derivatives, addressing the current scarcity of regulated venues.
Jeremy Punnett, Portfolio Manager at M&G, said, The UK has the potential to become a global hub for digital asset technology and investment, making London an excellent destination for GFO-X’s new global trading venue.
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.”
GFO-X’s initial focus on clearing Bitcoin index futures and options contracts marks a significant stride in integrating cryptocurrencies into mainstream finance, contingent on evolving UK and European regulations.
Also Read: European Union’s Crypto Bank Capital Regulations Finalized
