GFO-X said on Thursday it has received In-Principle Approval from the Financial Services Regulatory Authority of ADGM, the Abu Dhabi international financial centre, to launch a Recognised Investment Exchange and Recognised Clearing House for digital assets and their derivatives.

The exchange group, which launched its first, London-based venue in May, said this “strategic expansion” will offer clients choice of where and how to trade cryptocurrency derivatives. The new Abu Dhabi exchange, which is known as GFO-X AD, is slated for launch next year, the firm said on Thursday.

Arnab Sen, CEO of GFO-X, said: "This approval is a pivotal step in our journey to build a globally interconnected, regulated marketplace for digital asset derivatives and complementary products. ADGM’s regulatory sophistication and institutional-grade infrastructure make it an ideal jurisdiction for our next phase of growth to support digital assets and the benefits of collateral mobility."

GFO-X went live in early May with weekly and monthly bitcoin options and monthly bitcoin futures, offering streaming prices from day one courtesy of market-maker IMC.

The firm enjoyed a boost in late July when Marex became the latest large financial firm to back the UK-regulated bitcoin futures and options exchange.

GFO-X secured in December 2023 $30m (£24m) in a funding round led by M&G Investments designed to support the institutional crypto platform through its launch which at that time was planned for early 2024.

The venue, regulated by the Financial Conduct Authority, has since won the backing of banks ABN Amro Clearing, Nomura, Standard Chartered as well as market-makers IMC and Virtu.

GFO-X hired in July Sabrina Wilson, formerly of Citi, JP Morgan and Goldman Sachs, as chief operating officer to scale up the London-based crypto derivatives market after launch.