Britain’s M&G Invests $20M in Crypto Derivatives Platform GFO-X

By providing $20 million, M&G is helping GFO-X create a properly regulated environment for safe access to crypto derivatives trading.

Global Futures and Options (GFO-X), a crypto derivatives trading platform based in the UK, has announced it received a $20 million investment from the asset management arm of pensions provider M&G Plc.

According to GFO-X, the investment was part of a $30 million series B funding round for the company. This confirms that M&G is the lead in the funding round. The funds will help GFO-X with its launch as it tries to innovate in the crypto sector and repair any lost trust or credibility.

The crypto company supports large institutional players that require a safe and regulated trading platform for secure access to crypto derivatives. According to an announcement, GFO-X already prides itself in a ‘regulation first’ approach, a method that has helped the company garner some trust with large institutional players.

M&G to Help GFO-X Create Safe Regulatory Environment For Crypto Derivatives Trading

M&G Portfolio Manager Jeremy Punnett says that the investment in GFO-X helps to create an enabling environment for investors to trade digital asset derivatives on a regulated platform. The Portfolio Manager also believes the UK has the potential to become a worldwide hub for crypto tech and investment. According to Punnett:

“The lack of regulated trading venues is materially hampering the growth of the crypto derivatives trading market…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 CEO Arnab Sen also spoke on the investment. Sen said that as crypto enters mainstream finance, a proper market structure is essential to handle risks properly. This is crucial, so that mainstream finance does not suffer crypto problems. However, solving this problem requires cultivating a regulated financial market ecosystem with all of its complexities. Sen then adds that this is something GFO-X is willing to do with a “patient long term capital planner such as M&G.”

GFO-X is the first regulated and centrally cleared trading platform in the UK, authorized by the Financial Conduct Authority (FCA). According to the company:

“Our mission is to deliver enhanced liquidity, institutional connectivity and risk mitigation through high-performance technology and optimised contract specifications.”

In April, GFO-X announced a strategic partnership with the London Stock Exchange Group (LSEG)’s LCH SA clearing house, to allow users trade cash-settled Bitcoin index futures and options.

Blockchain in Stock Trading

In September, Coinspeaker reported that the LSEG plans to incorporate blockchain technology into its operations. The LSEG, one of the world’s oldest stock exchanges, is considering the possibility that blockchain technology could improve the efficiency of its processes.  Also, the LSEG wants to use blockchain to help clients better purchase, sell, or hold assets.

The LSEG hopes that blockchain can help to automate its operations. If successful, this would significantly reduce the need for paperwork and any intermediaries. Also, blockchain will help to improve transparency and reduce the risk of fraud. However, the stock exchange has clarified that its interest in blockchain technology is limited to improving its operations. It currently has no plans or interest in “building anything around cryptoassets.”

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