- GFO-X secured $30 million in funding and participation from leading financial institutions, with its first transaction executed by Virtu Financial and IMC.
- The move addresses institutional needs for regulated and segregated crypto derivatives trading, as highlighted by industry leaders and recent market activity.
LCH, the world’s largest derivatives clearing house and part of the London Stock Exchange Group (LSEG), has introduced a new clearing platform focused on digital asset derivatives. The service, called LCH DigitalAssetClear, offers central clearing for contracts like bitcoin index futures and options. The platform supports GFO-X, a UK-regulated venue for trading digital asset derivatives. The first GFO-X trade was completed between Virtu Financial and IMC.
GFO-X recently raised $30 million in a Series B funding round, with M&G—a UK asset manager—leading the investment. M&G now holds over 25% but less than half of GFO-X’s stock. GFO-X received approval as a multilateral trading facility (MTF) from the UK’s Financial Conduct Authority the previous year.
GFO-X CEO Arnab Sen stated, “The launch of GFO-X is a further foundational step toward increased institutional digital asset derivatives trading, providing the infrastructure, central clearing, robust risk mitigation, and liquidity.” The initial market makers and participants include IMC, Nomura’s Laser Digital, and Virtu Financial. Nomura also participates in clearing through LCH DigitalAssetClear, along with ABN Amro and Standard Chartered.
This launch arrives as interest in institutional crypto derivatives trading grows. Last week, Coinbase announced the $2.9 billion acquisition of Deribit, a major options exchange. Two months earlier, Singapore’s SGX shared plans to begin offering perpetual futures.
Managing the risks of digital assets is a key concern for mainstream financial players, due to crypto market volatility. For this reason, LCH DigitalAssetClear operates as a fully separated entity, including a distinct default fund, to help ringfence risks for participants.
Marcus Robinson, Head of DigitalAssetClear and CDSClear at LCH, emphasized, “It is essential that we find ways to offer regulated, segregated and trusted routes to provide customers with a diverse breadth of services and we are excited to continue working with GFO-X to offer a regulated marketplace for this asset class.”
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