London Stock Exchange Group PLC (LSE:LSEG) and digital asset derivates platform Global Futures and Options (GFO-X) are teaming up to bring regulated bitcoin futures and options products to the British markets for the first time.
Paris-based clearing house LCH SA, which is owned by the London Stock Exchange Group, will facilitate the transactions via a new, segregated service called DigitalAssetClear.
Bitcoin futures and options are expected to go live in the fourth quarter of 2023, pending regulatory approvals.
"GFO-X is taking the first steps to extracting efficiencies from new technologies within a traditional market structure, with the goal over time of delivering 24/7 trading to global regulated digital asset markets," GFO-X said in a statement.
Bitcoin futures are already available through firms such as CME Group (NASDAQ:CME), while Deribit currently corners the options market, but LSE Group’s partnership with GFO-X is the first move by a mainstream clearing house.
"Recent market events in the trading of digital assets have highlighted the need for a safe, regulated venue where large financial institutions can trade at scale, while keeping their clients’ assets protected," said Arnab Sen, chief executive and co-founder of GFO-X.
Frank Soussan, business head at LCH, said: “We look forward to working with GFO-X and market participants alike to build a liquid, regulated marketplace for these products, and contributing to its safe growth and development."
UK prime minister and Conservative party head Rishi Sunak has long touted Britain’s potential as a global hub for digital asset technology, having launched numerous consultations into the poorly regulated sector in recent years, though has since dragged his feet on implementing a clear strategy.
However, crypto adoption has yet to go mainstream, with a YouGov poll suggesting only 10% of adult Britons have personally bought cryptocurrency in the past (though this is a 100% increase over two years).
The recent announcement by the London Stock Exchange Group comes amid a tear on bitcoin's price, having rallied over 80% year to date, marking bitcoin as one of the best-performing asset classes of 2023.