London-based crypto derivatives trading platform Global Futures and Options Ltd. (GFO-X) has struck key partnerships with major financial institutions such as Standard Chartered Plc (STAN.L) and Virtu Financial Inc (VIRT.O). These collaborations aim to build a regulated platform for institutional investors in the cryptocurrency derivatives market. GFO-X, slated to launch in the first quarter of 2025, is initially scheduled to launch bitcoin index futures and options, with support from financial titans and backing from the U.K. Financial Conduct Authority (FCA).
Standard Chartered Joins GFO-X for Crypto Platform
The project aims to meet a rising demand for crypto derivatives trading in the U.K., which will be launched on the platform in 2025. To build that infrastructure, GFO-X is looking to partner with financial institutions like Standard Chartered, Virtu Financial, and more to provide a robust ecosystem for institutional investors to enter and perform their financial transactions. It will offer products such as Bitcoin index futures and options on the exchange, geared for large-scale investors who want to trade safely and transparently.
LCH SA, a clearinghouse majority-owned by the London Stock Exchange Group, will clear these products. All trades will be cash-settled and serviced by LCH SA’s specialized DigitalAssetsClear service in a safe and regulated environment.
“GFO-X wants to build a complete ecosystem for digital asset trading, combining traditional financial systems with new blockchain technology,” said the partnership as per the agreement.
GFO-X Secures FCA Approval and Institutional Backing
Since 2022, GFO X has received backing from M&G Investments and gained regulatory approval from the U.K. Financial Conduct Authority (FCA). This approval will help lend credibility to GFO-X’s operations and foster more institutions to its platform. GFO-X’s position in the crypto derivatives market was boosted after LCH SA announced it would clear Bitcoin index futures from April 2024, becoming the first clearing house to clear such instruments.
GFO X is one of the few known ones, and the exciting opportunities it presents encourage it. Standard Chartered is one of the largest firms in the field, and it’s particularly excited about the possibilities. LCH SA will join as a general clearing member and support the platform’s derivatives launch with a commitment from the bank. In terms of its expertise in managing crypto liquidity, Virtu Financial, a leading market-making firm, will contribute to providing a smoother path to trading for institutional clients.
“We are pleased to support the launch of GFO X derivatives and become a general clearing member on LCH SA to give our clients the ability to trade and clear,” said Andy Ross, global head of prime and financing at Standard Chartered.
This brings credibility to the platform and future potential to reshape institutional engagement with crypto assets.
Institutional Interest in Crypto Soars After U.S. Election
There’s rising institutional interest in cryptocurrencies, and the collaboration of GFO-X, Standard Chartered, and Virtu Financial follows suit. Partly driven by political developments in the United States, the recent rally in digital asset prices has fanned investor optimism. Since the U.S. election, Bitcoin has exploded in value, growing over 40%.
While the Valley has long been interested in the crypto space, this is the increasing willingness of traditional finance players to engage with the space. As digital assets go mainstream, institutions such as Intesa Sanpaolo and now BlackRock are rapidly setting the pace with activities in digital assets. For instance, BlackRock has been gradually increasing its Bitcoin exposure through a Bitcoin-backed exchange-traded fund (ETF); yet another indication to institutional portfolios, such as Bitcoin, is the growing appeal of cryptocurrencies.
