FalconX Unveils New and Improved Bankruptcy-Remote Custody Solution for Institutions
Cryptocurrency trading firm FalconX has launched a new prime brokerage service, Prime Connect, to allow institutional investors to trade on exchanges while their funds remain in regulated, bankruptcy-remote custody. This new solution also includes post-trade settlement, institutional-grade credit, and portfolio margining, making it a comprehensive offering for institutions looking to scale their digital asset portfolios.
Deribit Becomes First Exchange to Integrate FalconX’s Prime Connect
Deribit, the world’s leading crypto options exchange, is the first to integrate FalconX’s prime broking and custody solution. This partnership highlights the growing need for institutions to have secure and segregated custody solutions in the wake of FTX’s collapse.
More Exchanges to Follow
According to Vivek Chauhan, a product manager at FalconX, the company plans to integrate Prime Connect with other exchanges in the near future. This will provide institutions with more options to trade on exchanges while keeping their assets safe in regulated custody.
The Importance of Regulated Custody in the Crypto Industry
The collapse of FTX has shed light on the need for institutions to keep their assets in fully segregated and regulated custodial setups. Prime Connect offers a solution to this problem, giving institutions the peace of mind they need to confidently trade on exchanges.
New Opportunities for Trading Firms
Several trading firms, including Hyperithm, have already started using Prime Connect to trade on Deribit. With more exchanges set to integrate with FalconX’s new solution, there will be even more opportunities for trading firms to enter the crypto market and scale their digital asset portfolios.
In Conclusion
FalconX’s Prime Connect marks a significant step towards making cryptocurrency trading more accessible and secure for institutional investors. With its comprehensive offering, including regulated custody and credit line services, it is sure to attract more institutions to enter the crypto market and drive its growth in the coming months.