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The launch of FalconX’s Prime aims to change this dynamic by offering corporate crypto traders enhanced execution capabilities, stable credit lines, and portfolio margin options.
FalconX, a leading crypto brokerage company headquartered in San Mateo, California, has launched Prime Connect, an innovative exchange settlement solution explicitly tailored for institutional investors.
According to an official press release on Tuesday, the new service enables institutional investors to trade digital assets on exchanges while securely keeping their funds in regulated, bankruptcy-remote custody.
FalconX Unveils Prime Connect
In the past, institutional investors faced scalability challenges caused by holding their capital on exchanges and managing risks associated with trading cryptocurrencies at the same exchange level.
However, the launch of FalconX’s Prime aims to change this dynamic by offering corporate crypto traders enhanced execution capabilities, stable credit lines, and portfolio margin options.
These features allow customers to optimize their use of capital by consolidating margin requirements across different assets in their investment portfolio.
Additionally, the new solution provides institutional customers with a secure and comprehensive platform for managing their funds and executing trades in the digital asset market.
The company said that Prime utilizes its regulated custody solution to protect customers’ assets against bankruptcy-related risks.
In comparing its custody solutions to others in the industry, FalconX revealed that it has “uniquely designed” its custody services to seamlessly integrate with its prime brokerage services, including offering credit facilities.
Deribit Taps FalconX’s Prime Connect to Expand Offerings
FalconX said in the press release that it has partnered with crypto exchange Deribit to roll out Prime. The company is the first digital asset trading platform to integrate the tool into its exchange for institutional customers.
“We are thrilled to be the first exchange that FalconX is partnering with to launch its off-exchange settlement solution,” said Luuk Strijers, the CEO of Deribit.
The Deribit boss sees the partnership with FalconX as a significant milestone in providing institutional investors with access to the exchange’s diverse range of services and FalconX’s full suite of prime services.
So far, institutional crypto trading companies like Hyperithm have begun using the tool to trade digital assets in Deribit. The company’s chief investment officer, Jonggu Lee, said using FalconX’s Prime will help mitigate counterparty risks and improve the company’s operational workflow.
“We are excited to leverage this platform to its full potential,” Lee said.
FalconX to Extend Prime to Other Exchanges
According to the press release, FalconX plans to extend its Prime to other exchanges in the coming months. While the crypto broker did not disclose the exact timeline for the expansion, the company revealed that exchanges incorporating Prime into their platforms could tap into a network of premier institutional traders seeking the same transformative benefits the tool offers.
The company is known in the industry for providing crypto brokerage services to leading institutional investors. FalconX is registered as a swap dealer under the US Commodities Futures Trading Commission (CFTC) and is backed by prominent venture capital companies such as Accel, Adams Street Partners, Altimeter Capital, and American Express Ventures.
