FalconX Launches Prime Connect, A Fully Integrated Solution to Mitigate Exchange Counterparty Risk, with Deribit as First Integration
Offering Includes Custody, Trading, Credit, and Off-Exchange Settlement
San Mateo, CA - FalconX, the leading institutional digital asset prime broker, announces the launch of Prime Connect, an exchange settlement solution which enables institutional investors to trade on exchanges while their funds remain in bankruptcy-remote, regulated custody. This new offering marks a pivotal next step in the development of the cryptocurrency industry’s market structure as it is an industry-leading solution for clients seeking a secure exchange trading environment along with access to FalconX’s suite of prime services including post-trade settlement, institutional-grade credit, and portfolio margining.
“FalconX’s Prime Connect caters to the critical needs of institutional investors trading in digital assets," said Vivek Chauhan, Principal Product Manager at FalconX. “We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”
Historically, institutional investors held capital on exchanges and managed risk at an exchange-level, limiting their ability to scale. FalconX’s Prime Connect enables institutional traders to utilize improved execution and stable credit lines coupled with portfolio margining. This enhances capital efficiency and risk management but without compromising asset security as client assets remain in custody segregated from both the exchange’s and FalconX’s assets.
"We are thrilled to be the first exchange that FalconX is partnering with to launch its off-exchange settlement solution," said Luuk Strijers, CEO of Deribit. “This collaboration marks a significant milestone in providing institutional investors with access to our offering coupled with FalconX’s full suite of prime services that will enhance client trading capabilities and financial flexibility.”
Leading institutional trading firms including Hyperithm are leveraging FalconX’s Prime Connect to trade on Deribit. Prime Connect will be available on other global exchanges in the coming months. Exchanges integrated with Prime Connect can tap into a network of premier institutional traders seeking these same transformative benefits.
“In the fast-paced world of crypto trading, having a reliable partner like FalconX that provides comprehensive market access along with robust credit and portfolio-margining is invaluable,” said Jonggu Lee, Chief Investment Officer at Hyperithm. “The launch of FalconX’s Prime Connect will mitigate counterparty risk and enhance our operational workflow. We are excited to leverage this platform to its full potential.”
Prime Connect leverages FalconX’s regulated custody solution, ensuring that client assets held in FalconX Custody are bankruptcy-remote. While many solutions solely focus on security, FalconX’s custody is designed to seamlessly integrate with its suite of prime brokerage services including provision of credit.
For more information: https://www.falconx.io/services/prime-connect
About FalconX
FalconX is a leading digital assets prime brokerage for the world’s top institutions. We provide comprehensive access to global digital asset liquidity and a full range of trading services. Our 24/7 dedicated team for account, operational and trading needs enables investors to navigate markets around the clock. FalconX Bravo, Inc., a FalconX affiliate, was the first CFTC-registered swap dealer focused on cryptocurrency derivatives.
The company is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management and Wellington Management. FalconX has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta. For more information visit falconx.io or follow FalconX on X and LinkedIn.
“FalconX” is a marketing name for FalconX Limited and its affiliates. Availability of products and services is subject to jurisdictional limitations and FalconX entity capabilities. For more information about which legal entities offer particular products and services, please see the disclosure on our public website, incorporated herein, or reach out to your relationship contact.
This material is for informational purposes only and is only intended for sophisticated or institutional investors. Neither FalconX Limited, FalconX Bravo, Inc., FalconX Delta, Inc., FalconX Foxtrot Pte Ltd., FalconX Golf Pte Ltd., Solios, Inc., Falcon Labs, Ltd., KestrelX, Ltd., nor Banzai Pipeline Limited (separately and collectively “FalconX”) service retail counterparties, and the information on this website is NOT intended for retail investors. The material published on this website is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations, or (iii) an official statement of FalconX or any of its affiliates. Any information contained in this website is not and should not be regarded as investment research, debt research, or derivatives research for the purposes of the rules of the CFTC or any other relevant regulatory body.
Prior to entering into any proposed transaction, recipients should determine, in consultation with their own investment, legal, tax, regulatory, and accounting advisors, the economic risks and merits, as well as the legal, tax, regulatory and accounting characteristics and consequences of the transaction. Pursuant to the Dodd-Frank Act, over-the-counter derivatives are only permitted to be traded by "eligible contract participants" (“ECP”s) as defined under Section 1a(18) of the CEA (7 U.S.C. § 1a(18)). Do not consider derivatives or structured products unless you are an ECP and fully understand and are willing to assume the risks.
Solios, Inc. and FalconX Delta, Inc. are registered as federal money services businesses with FinCEN. FalconX Bravo, Inc. is registered with the U.S. Commodities Futures Trading Commission (CFTC) as a swap dealer and a member of the National Futures Association. FalconX Limited, FalconX Bravo, Inc., FalconX Delta, Inc., Falcon Labs Ltd., and Solios, Inc. are not registered with the Securities & Exchange Commission or the Financial Industry Regulatory Authority. FalconX Golf Pte. Ltd. is not required to be registered or licensed by the Monetary Authority of Singapore (MAS). MAS has granted FalconX Foxtrot Pte. Ltd. a temporary exemption from holding a license under the PSA for the payment services caught under the expanded scope of regulated activities for a specified period. FalconX Limited is a registered Class 3 VFA service provider with the Malta Financial Services Authority under the Virtual Financial Assets Act of 2018. FalconX Limited is licensed to provide the following services to Experienced Investors, Execution of orders on behalf of other persons, Custodian or Nominee Services, and Dealing on own account. FalconX’s complaint policy can be accessed by sending a request to complaints@falconx.io
"FalconX" is a marketing name for FalconX Limited and its affiliates. Availability of products and services is subject to jurisdictional limitations and capabilities of each FalconX entity. For information about which legal entities offer trading products and services, or if you are considering entering into a derivatives transaction, please reach out to your Sales or Trading representative.
