Cryptocurrencies, blockchain, NFT and new trends

London Stock Exchange unit to clear bitcoin derivatives

Companies • April 13, 2023, 10:12AM EDT

Quick Take

  • London Stock Exchange Group’s LCH division plans to begin clearing bitcoin index futures and options in a deal with GFO-X. 

Stay updated on Pro Crypto Ecosystems news by locking ACS tokens with The Block.

Connect/Create Wallet You can unlock at any time.*
No wallet? No problem. You can set one up for free. We recommend Torus for first-time users.
*a 2% locking fee will be added at the time of locking. Learn more about Access Protocol

London Stock Exchange Group took a step into crypto as its French clearinghouse unit signed a deal with an institutional-focused trading venue to offer trading in bitcoin derivatives. 

LSE’s LCH division plans to begin clearing bitcoin index futures and options for GFO-X, a UK-based startup founded in 2020, according to a statement. The new venture will be known as LCH DigitalAssetClear.

Clearinghouses sit between the two sides of a trade and step in should one party default on their obligations. LCH, the world’s largest clearinghouse for derivatives, said clearing for the new digital assets venture will be entirely separated from other trading operations, including a segregated default fund.

LSE’s move comes as bitcoin’s price has climbed more than 80% this year, reigniting some institutional interest despite high-profile crypto bankruptcies and regulatory action. 

The new index futures and options contracts will be based on the GFO-X/Coin Metrics Bitcoin Reference Rate, a reference rate of the U.S. dollar price of bitcoin.