London-based Global Futures and Options Ltd. (GFO-X) is set to launch the UK’s first regulated and centrally cleared crypto derivatives trading platform in early 2025. The platform, focused on Bitcoin index futures and options, has secured major financial players like Standard Chartered Plc, Virtu Financial Inc., ABN Amro Clearing, and market maker IMC.

Delayed Launch Gains Momentum

Initially planned for late 2023, GFO-X postponed its debut twice due to market uncertainties. However, renewed interest in digital assets, spurred by the pro-crypto stance of the re-elected US administration, has catalysed the project. Bitcoin’s recent rally, climbing over 40% to a record high of $103,800, has further heightened institutional enthusiasm.

Clearing with LCH DigitalAssetsClear

GFO-X trades will be cleared by LCH SA, a majority-owned subsidiary of the London Stock Exchange Group. LCH has developed DigitalAssetsClear, a bespoke solution for cash-settling crypto derivatives, to support this venture.

M&G Investments, which participated in a $30 million funding round for GFO-X last year, remains a key backer of the platform. CEO Arnab Sen highlighted the platform’s appeal to cautious firms, noting a surge of interest following the US election.

Growing Institutional Interest in Crypto

The launch of GFO-X aligns with a broader trend of traditional financial institutions entering the crypto space. BlackRock Inc. now holds $58 billion in Bitcoin-backed ETFs, while Intesa Sanpaolo SpA has expanded its digital assets desk.

This milestone underscores the increasing convergence of traditional finance and digital assets, setting the stage for further innovation in the crypto derivatives market.