Crypto Derivatives Platform Scores Big
The capital injection was made on behalf of M&G’s £129 billion Prudential With-Profits Fund, a testament to the growing interest of traditional asset managers in the crypto space.
GFO-X, which entered into a strategic partnership with LCH SA, a subsidiary majority-owned by the London Stock Exchange Group (LSEG), earlier this year, is set to utilize LCH’s clearing service, DigitalAssetClear.
While both LCH DigitalAssetClear and the partnership with GFO-X were initially expected to go live by the end of 2023, regulatory approval for LCH DigitalAssetClear is still pending. However, a GFO-X spokesperson told Bloomberg that the platform expects to launch in the first quarter of 2024.
Renewed Optimism In The Market?
Per the report, M&G’s significant investment in GFO-X serves as a notable indicator of changing tides in institutional support for digital asset infrastructure.
The report further highlights that M&G Investments’ injection not only provides a significant boost to GFO-X but also reinforces the broader narrative of institutional acceptance and participation in the crypto derivatives market.
Among the various digital assets, Bitcoin (BTC) remains a dominant force, with a market cap of $811 billion. This accounts for a Bitcoin dominance of 53.30%, indicating that Bitcoin continues to hold a significant share of the overall cryptocurrency market.
Featured image from Shutterstock, chart from TradingView.com