Asset Manager M&G Invests $20 Million in UK-Based Crypto Derivatives Exchange
M&G, a pension fund based in the UK, has added $20 million to a BTC derivatives exchange. The investment is part of the plan to offer derivatives trading services for traditional firms. The BTC derivatives trading platform is known as Global Futures & Options Holdings.
A joint announcement issued by both firms shared the details regarding the investment venture. As per the notification, this is the first installment part of a $30 million series B funding round hosted by the derivatives exchange.
Bitcoin-Based Derivatives Services
This platform will also offer clearing services for Bitcoin index futures and options. In this manner, various traditional financial firms will be able to invest in digital currencies using derivatives.
The Bitcoin derivatives platform has also applied for regulatory approval from the Financial Conduct Authority (FCA). Once approved the platform will start offering regulated crypto-derivatives trading services.
M&G to Become a Board Member of GFO-X Derivatives Exchange
According to the media reports, the new funding program is part of the crossover strategy of M&G following a series B funding round. The fund has drawn reserves from $138 billion prudential fund.
This crossover strategy is directed towards patient growth equity and growth firms from private sector. The funding will create a hub for trading and clearing digital asset derivatives. At the same time, this fund will also safeguard the preservation of innovation within the sector.
The investment plan entails inclusion of M&G to join the board of GFO-X derivatives exchange. On this account, Jeremy Punnett a portfolio manager M&G noted that the London and United Kingdom is on track to become the leading location for digital asset startups and tech.
He further noted that the presence of unregulated crypto trading platforms in the country has continued to hinder the development of the sector.
Arnab Sen, the CEO of GFO-X, noted that United Kingdom and European regulators will pave the way for digital currencies to foray into traditional financial offerings.
Financial Conduct Authority Updates Regulatory Guidelines for Crypto Sector
At present, traditional financial entities are foraying into DeFi sector while assuming a measured risk approach. Sen also noted that building a regulated trading marketplace is a complex process that also requires massive investment input.
She claimed that practical utility of digital assets and digital real tangible assets requires selective collaboration between traditional and modern market participants. The regulatory environment for crypto sector in UK has remained stringent.
However, commercial and retail participants have continued to take an interest in the digital asset market. Therefore, FCA the main financial regulator in the UK recently updated the regulatory framework for the industry. The new changes have added additional requirements for cryptocurrency firms to comply with marketing regulations.
On this account, some firms have opted to exit the region while others have halted operations on a temporary basis to ensure compliance with the strict advertisement requirements issued by the regulators and legislators in the UK.
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