At its San Mateo, California headquarters, FalconX – a prominent player in the crypto brokerage industry – unveils Prime Connect: a novel exchange connection system designed specifically for large-scale investors.
In a press announcement on Tuesday, it was revealed that the new service allows institutional investors to buy and sell digital assets on exchanges while ensuring their funds are safely held in regulated, insolvency-protected custody.
FalconX Unveils Prime Connect
Previously, large investment firms encountered difficulties in handling their funds and mitigating risks when keeping assets on cryptocurrency exchanges for trading purposes, due to scalability issues.
Instead of FalconX’s Prime just maintaining the current situation for corporate crypto traders, it aspires to bring about a shift by providing advanced execution abilities, reliable credit facilities, and flexible portfolio margin choices.
With this feature, customers can combine the needed margin for various assets in their investment collection into a single amount, maximizing the effective use of their capital.
Furthermore, the innovative approach offers institutional clients a safe and complete solution for overseeing their investments and conducting transactions in the cryptocurrency marketplace.
The company explained that it uses its regulated custodial service to shield customers’ assets from going bankruptcy-risk. In simpler terms, the business employs a secure and regulated service to safeguard clients’ possessions against potential bankruptcy issues.
FalconX distinguished itself from other industry players by designing its custody offerings to work harmoniously with its prime brokerage solutions, providing access to credit facilities among other features.
Deribit Taps FalconX’s Prime Connect to Expand Offerings
In a recent press statement, FalconX announced a collaboration with Deribit, a crypto exchange, to introduce Prime. FalconX became the first digital asset trading platform to offer this tool directly on their exchange, catering specifically to institutional clients.
“Deribit’s CEO, Luuk Strijers, expressed his excitement: ‘We’re proud to be the initial platform collaborating with FalconX to introduce their off-exchange settlement solution'”
The Deribit CEO views the collaboration with FalconX as a major achievement, allowing institutional investors to utilize the extensive array of offerings from Deribit and FalconX’s complete package of prime services.
To date, firms specializing in crypto trading at institutions such as Hyperithm have initiated trades of digital assets on Deribit employing FalconX’s Prime solution. According to Jonggu Lee, their chief investment officer, this implementation aims to minimize counterparty risks and streamline the company’s operational processes.
“We are excited to leverage this platform to its full potential,” Lee said.
FalconX to Extend Prime to Other Exchanges
Based on the announcement, FalconX intends to expand its Prime service to additional exchanges in the near future. The specific rollout schedule was not provided by the crypto broker, but it did mention that exchanges adopting Prime would have access to a group of top-tier institutional traders, who are all looking for the same advantages this tool provides.
In the financial world, FalconX is recognized for offering top-tier crypto brokerage solutions to major institutional investors. This reputable firm holds a swap dealer registration with the US Commodities Futures Trading Commission (CFTC). Moreover, it boasts notable backers like Accel, Adams Street Partners, Altimeter Capital, and American Express Ventures.
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2024-04-23 14:37