Exclusive: GCEX posts £1.3M profit on £1.9M revenue in first full year of operation
FNG Exclusive… FNG has learned via regulatory filings that GCEX, the institutional-focused digital assets and FX brokerage established by former CFH Clearing co-founder Lars Holst, ended 2021 – its first full year of operation – in “the black”, posting a Net Profit of £1.3 million on Revenues of £1.9 million.
GCEX indicated that it aims to reinvest these profits to help the firm develop a strong net capital position, which will allow for continued investment in trading platform technology, and to source increased liquidity for its client base.
Client balances at GCEX climbed to £15.5 million at the end of 2021, versus £1.0 million in 2020, when the company had just begun to operate.
Interestingly, GCEX noted that it withdrew its application under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations as a cryptoasset business at the end of March 2022. This affected all clients utilising spot cryptocurrency products. The impacted clients were transferred on or prior to 31 March 2022 to other subsidiaries in the GCEX group. All other services, including the firm’s FCA regulated business, remain unaffected by this event.
At the end of 2021 GCEX secured an investment of USD $4 million from the True Global Ventures 4 Plus Fund, most of which will be invested in the company to strengthen its equity position and further its ambitious growth strategy.
FNG spoke with GCEX CEO Lars Holst, who said:
“20/21 was a transformative period for GCEX and we experienced rapid growth. Our strong financial results reflect both an increase in our market share and an increased market acceptance of digital assets.
“We plan to reinvest the profits to continue to develop a strong net capital position which will allow for continued investment in our trading platform technology and will enable us to source increased liquidity for our client base. The $US 4 million investment we received from True Global Ventures 4 Plus (TGV4 Plus) in December 2021 also enables us to strengthen our equity position and further accelerate our growth. We have ambitious growth plans and will be making a series of strategic announcements over the coming months.”
GCEX provides a digital asset and currencies technology solution for institutional and professional clients. Headquartered in London, GCEX was established in 2018 by Lars Holst in response to demand for regulated and compliant exposure to the digital asset market. Authorised and regulated by the Financial Conduct Authority (FRN 828730), GCEX provides funds, brokers, asset managers, professional traders and banks with an advanced suite of integrated financial technology products including AI applications, allowing clients to automate on-boarding, offer and trade digital assets and currencies with tight spreads and deep liquidity from Tier 1 banks, as well as solutions for clearing.