M&G Investments has led a $30 million Series B funding round for FCA-authorised digital asset derivatives venue GFO-X.
Alongside the funding round, M&G Investment will join the board of Global Futures and Options Holdings.
The strategic investment will assist GFO-X with its forthcoming launch and support future innovation in the regulated digital asset sector.
According to GFO-X, its goal is to bring partners along the journey of innovation, step by step, as digital assets deliver more sophisticated institutional grade products.
“The lack of regulated trading venues is materially hampering the growth of the crypto derivatives trading market,” said Jeremy Punnett, M&G portfolio manager.
“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.”
In April, GFO-X and LSEG’s LCH SA entered a strategic partnership to introduce a new, segregated central counterparty clearing service named LCH DigitalAssetClear, subject to regulatory approval.
LCH DigitalAssetClear will focus on counterparty credit, risk management, and the settlement needs of the digital asset derivatives market as institutional products develop.
Read more: LCH SA to launch UK’s first centrally cleared trading venue for digital asset derivatives with GFO-X
“The long-term viability of digital assets and the digitisation of real tangible assets requires careful collaboration between traditional market participants and modern innovators,” said Arnab Sen, chief executive of GFO-X.
“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.”