M&G, a global investment manager based in London, has invested in GFO-X, a UK-based digital asset exchange. The latter was able to raise $30 million in a series B funding round that M&G Investments led.

Global Futures and Options (GFO-X) is a digital asset trading company authorized by the UK government's Financial Conduct Authority (FCA). It confirmed on Monday, Dec. 11, that M&G Investments had ushered the second round of funding ahead of its official debut.

Strategic Investment Move

GFO-X is licensed by the country's FCA, which means that global institutional investors are allowed to trade digital asset futures and options, which will then be cleared by LCH SA, the London Stock Exchange Group's Paris-based clearing unit, as per Reuters.

The investment is strategic because it will give M&G Investments a seat on GFO-X Holding's board. Jeremy Punnett, the portfolio manager of M&G, explained that the lack of regulated trading venues is significantly hindering the growth of the crypto derivatives trading market. Thus, they hope its latest investment in the upcoming digital asset trading firm will help resolve this issue.

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

Regulated Marketplace for Bitcoin

LCH SA, London Stock Exchange Group's (LSEG) Continental European clearing house, said it will provide a regulated marketplace for Bitcoin index futures and options after the completion of GFO-X's series B funding that M&G. Binance News spearheaded reported that the raised funds will be utilized to support the asset exchange's product launches.

Meanwhile, GFO-X will offer trading services for cryptocurrencies like Bitcoin and other digital assets. It promises to provide a secure and systematic trading environment for its users. And with the latest M&G funding, aside from expanding its products, it will spend money on improvements on its platform to give better service to its customers.

"The lack of regulated trading venues is materially hampering the growth of the crypto derivatives trading market," Jeremy Punnet, M&G's portfolio manager, said in a press release. "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 venue. 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."

Photo by: GFO X Press Release