M&G Investments has provided $30 million in a seed round for the upcoming launch of digital asset trading startup Global Futures and Options (GFO-X). Once operational, GFO-X will offer a regulated marketplace for institutional investors to trade derivatives of digital assets. In May, the firm reached an agreement with London Stock Exchange clearing house LCH for secure settlement through its new, segregated central counterparty clearing service, LCH DigitalAssetClear.
Corentine Poilvet-Clédière, CEO of LCH SA, expressed enthusiasm for the collaboration: “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.”
Jeremy Punnett, a portfolio manager at M&G, noted that the lack of regulated trading venues has been impeding the growth of the crypto derivatives trading market. He further commented that the UK has the potential to become a global leader in crypto asset technology and investment, making London an ideal location for GFO-X’s global trading venue.
GFO-X CEO Arnab Sen commented that the transition of digital assets into mainstream finance will only be successful with the support of traditional market infrastructures. He concluded that having a patient long-term capital partner like M&G is essential for building the next generation of global financial market infrastructures for digital assets.
