FalconX Unveils Prime Connect to Mitigate Exchange Counterparty Risk

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.

"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."

According to the announcement, 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."

Several 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.

Source: PR Newswire