London-based digital asset derivatives trading platform Global Futures and Options Exchange (GFO-X) announced today that it has raised $30 million in a Series B funding round led by M&G Investments, the $332 billion asset management arm of M&G plc. M&G will also gain a seat on GFO-X’s board as part of its investment.
This new injection of funds will help support GFO-X’s plans to launch and scale up its operations as a regulated trading venue for institutional investors to trade digital asset derivatives. GFO-X aims to address the lack of regulated crypto trading platforms, which is currently limiting growth in this market.
In April 2023, GFO-X entered into a strategic partnership with LCH SA, the Continental European clearing house owned by London Stock Exchange Group (LSEG). Under this partnership, LCH SA will provide centralized counterparty clearing services for GFO-X’s platform under a new service called LCH DigitalAssetClear, subject to regulatory approval.
The integration with LCH SA’s strong risk management capabilities and large client base, combined with GFO-X’s expertise in digital assets, optimized contracts, and high-performance trading technology, will provide a unique regulated ecosystem for institutional participation in crypto derivatives.
M&G Portfolio Manager Jeremy Punnett commented that the lack of regulated crypto trading venues is holding back growth and that GFO-X’s platform in London can help establish the UK as a global hub for digital asset technology and investment.
GFO-X CEO Arnab Sen also highlighted the need for collaboration between traditional finance and digital asset innovators to bring crypto into the mainstream under proper regulation and market structures. He said that long-term partners like M&G are essential for building the next generation of regulated digital asset market infrastructure.
With its “regulation-first approach,” GFO-X aims to bring institutional-grade products and services to the digital asset space, starting with regulated Bitcoin index futures and options. The funding from investors like M&G will help drive its global expansion as demand grows for properly regulated and transparent crypto derivatives trading.