M&G Investments has recently committed a substantial £20 million investment into Global Futures & Options Holdings (GFO-X), a centrally-cleared trading house specializing in digital currency asset derivatives. This move by M&G is in direct response to the escalating demand from institutional investors, with reference to a 2022 BNY Mellon survey revealing that 91% of institutional investors express a keen interest in tokenized products.
Positioning itself as the pioneer in the realm, GFO-X is poised to become the United Kingdom’s inaugural Financial Conduct Authority (FCA)-regulated exchange for digital currency asset derivatives. This achievement is attributed to its strategic partnership with the London Clearing House.
The infusion of funds originates from M&G’s Crossover strategy, overseen by the firm’s public equity investment division. In addition to the financial commitment, M&G will secure a seat on the board of GFO-X, signifying a deeper level of involvement and commitment to the venture.
Jeremy Punnett, M&G portfolio manager, emphasized the impediment caused by the absence of regulated trading venues within the digital currency trading market. He stated, “The lack of regulated trading venues is materially hampering the growth of the digital currency trading market.” Highlighting the potential for the UK to emerge as a global hub for digital asset technology and investment, Punnett identified London as an ideal destination for GFO-X’s new global trading venue. He also pointed out that the investment facilitates the scaling of GFO-X’s operations, as investors increasingly shift their trading from unregulated to regulated venues.
GFO-X CEO Arnab Sen underscored the complexity and significance of constructing a regulated financial market ecosystem, acknowledging the need for careful collaboration between traditional market participants and modern innovators. Sen expressed gratitude for M&G’s patient, long-term capital partnership, deeming it crucial as they work towards building the next generation of global financial market infrastructure for digital assets.
This strategic investment positions M&G at the forefront of the evolving landscape of digital currency trading, contributing to the establishment of a regulated and robust financial market ecosystem for digital assets in the UK.
