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GFO-X Raises $30M: Spearheading the Evolution of Regulated Crypto Derivatives

The $30 million Series B funding, led by M&G Investments, is a testament to the growing interest and confidence in regulated digital asset markets.

Photo by Kanchanara / Unsplash

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Global Futures and Options (GFO-X), a trailblazer in the digital asset derivatives market, has recently announced a significant milestone in its journey towards revolutionizing the regulated digital asset sector.

The company has successfully raised $30 million in a Series B funding round, led by M&G Investments, a move that not only bolsters GFO-X's financial standing but also marks a pivotal moment in the mainstreaming of digital assets in finance. The funds will be used to support the growth of regulated digital assets, and create a global hub for the trading and clearing of digital asset derivatives, according to an announcement on Monday.

GFO-X, the UK's first regulated and centrally cleared trading venue dedicated to digital asset derivatives, is addressing a critical need in the market. Large global institutional participants are seeking a safe, regulated trading venue to trade digital asset derivatives at scale while ensuring the protection of their clients' assets. GFO-X's 'regulation first' approach has already garnered trust and credibility with major institutions, positioning it as a leader in this emerging field, the company said.

Jeremy Punnett, M&G Portfolio Manager, highlighted the lack of regulated trading venues as a significant barrier to the growth of the crypto derivatives trading market. He noted that the UK has the potential to become a global hub for crypto asset technology and investment, making London an ideal location for GFO-X’s new global trading venue.

Arnab Sen, CEO of GFO-X, emphasized that evolving regulation will bring digital assets into mainstream finance. This transition requires traditional market structures to address the risks associated with the digital asset market. The long-term viability of digital assets and the digitization of real tangible assets necessitate careful collaboration between traditional market participants and modern innovators, Sen said.

In April 2023, GFO-X announced a strategic partnership with LCH SA, part of the London Stock Exchange Group, to introduce a new, segregated central counterparty clearing service, LCH DigitalAssetClear. This service, subject to regulatory approval, is focused on counterparty credit, risk management, and the settlement needs of the digital asset derivatives market.

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