LCH Unveils DigitalAssetClear as GFO-X Begins Institutional Crypto Derivatives Trading

LCH, the leading global derivatives clearing house and a subsidiary of the London Stock Exchange Group (LSEG), has officially launched LCH DigitalAssetClear, a purpose-built clearing service for digital asset derivatives. This new platform will begin operations by providing central clearing services for GFO-X, the UK’s regulated digital asset derivatives exchange, starting with Bitcoin index futures and options. The first trade on the platform was successfully executed between Virtu Financial and IMC.

GFO-X gained momentum following a $30 million Series B funding round in late 2023, with the UK asset management giant M&G leading the investment. M&G now holds the largest individual stake in the company—over 25%—after GFO-X secured a Multilateral Trading Facility (MTF) license from the UK’s Financial Conduct Authority.

Arnab Sen, CEO of GFO-X, emphasized that this milestone represents a critical step in developing a robust institutional infrastructure for trading digital asset derivatives. “We’ve built a market framework with solid risk controls, central clearing, and enhanced liquidity. With our debut trade executed between two top-tier financial firms, we’re helping scale institutional adoption,” he noted.

GFO-X has already attracted a strong lineup of participants, including IMC, Virtu Financial, and Nomura’s Laser Digital, with Nomura also listed among the initial clearing members of DigitalAssetClear. Other key clearing participants include ABN Amro and Standard Chartered.

This launch comes as institutional appetite for crypto derivatives continues to grow. Just last week, Coinbase announced its $2.9 billion acquisition of Deribit, a leading options exchange. Additionally, Singapore’s SGX recently revealed plans to introduce perpetual futures trading.

Given the inherent volatility in the digital asset market, institutions are increasingly focused on minimizing systemic risk. LCH addressed this by fully ringfencing the DigitalAssetClear entity, establishing a separate default fund to protect clients and mitigate exposure.

Marcus Robinson, Head of DigitalAssetClear and CDSClear at LCH, remarked, “Our goal is to build secure, regulated access points to this evolving asset class. By collaborating with GFO-X, we’re enabling institutions to engage in digital assets through a trusted and transparent ecosystem.”