M&G Investments is the £332 billion asset management arm of M&G plc

Global Futures and Options Ltd (GFO-X), through its strategic partnership with LCH SA, is the UK’s first regulated and centrally cleared trading venue dedicated to digital asset derivatives

M&G’s investment will help support the growth of regulated digital assets, and create a global hub for the trading and clearing of digital asset derivatives

M&G will join the Board of GFO-X Holdings 

GFO-X announces that M&G Investments has led a $30m Series B funding round for the Company and will join the Board of Global Futures and Options Holdings. The strategic investment will fund GFO-X through its forthcoming launch and support future innovation in the regulated digital asset sector, enhancing trust and credibility in the market.

GFO-X services the significant unmet need of large global institutional participants. They require the certainty of a safe, regulated trading venue enabling them to trade digital asset derivatives at scale while protecting their client’s assets. A ‘regulation first’ approach has already enabled GFO-X to achieve trust and credibility with the largest institutions. GFO-X’s goal is to bring partners along the journey of innovation, step by step, as digital assets deliver more sophisticated institutional grade products.

In April 2023, GFO-X announced a strategic partnership with LCH SA, London Stock Exchange Group’s (LSEG) Continental European clearing house. LCH SA will introduce a new, segregated central counterparty clearing service, LCH DigitalAssetClear, subject to regulatory approval. LCH DigitalAssetClear is focused on counterparty credit, risk management, and the settlement needs of the digital asset derivatives market as institutional products develop.

This partnership will provide a unique and powerful service offering, combining GFO-X’s deep understanding of the digital asset market, optimised contract specifications and high-performance technology capable of operating 24/7, with LCH SA’s strong client base and proven risk management capabilities.

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 exchange. This investment enables GFO-X to scale its operations as the business is set to benefit from investors shifting their trading from unregulated venues to regulated exchanges.”

Arnab Sen, CEO of GFO-X, says, “Evolving regulation will bring digital assets into mainstream finance. This transition demands traditional market structures to solve the multiple risks currently associated with the digital asset market. However, building a regulated financial market ecosystem is complex, time-consuming and expensive, and the pitfalls of taking shortcuts are now clear for all to see. The long-term viability of digital assets and the digitisation of real tangible assets requires careful collaboration between traditional market participants and modern innovators. 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. ”

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.”

Source: GFO-X