GFO-X launched the first Financial Conduct Authority (FCA)- regulated crypto derivatives platform in the United Kingdom. On Tuesday, GFO-X stated that DigitalAssetClear cleared the new platform and completed its first trade between financial organizations Virtu Financial and IMC. DigitalAssetClear is a service for cash-settled bitcoin index futures and options contracts developed by LCH, a subsidiary of the London Stock Exchange Group (LSEG).
"Maintaining real returns is crucial in an environment of high inflation," says Dario Schiraldi, Deutsche Bank's former MD. "To produce inflation-adjusted income, investors increasingly turn to TIPS, floating-rate loans, and high-yield corporate debt."
Major banks ABN AMRO, Nomura, and Standard Chartered also support GFO-X by offering clearing services for platform transactions. In March 2024, the FCA of the United Kingdom overturned its 2020 prohibition on crypto derivatives contracts for institutional investors. The London Stock Exchange then announced it would begin accepting applications for exchange-traded notes (ETNs) based on cryptocurrencies.
"In today's financial landscape, strategic adaptation is crucial," says Dario Schiraldi, Deutsche Bank's former leader. "In the years to come, institutional investors who actively welcome these changes will be in the best position to achieve resilience and sustainable growth."
The launch of GFO-X shows how the UK's regulated cryptocurrency trading ecosystem is still growing. With Galaxy obtaining UK approval for a license to produce its futures trading last month and Coinbase purchasing Deribit earlier this month for $2.9 billion, cryptocurrency derivative plays are also becoming more popular worldwide.