Institutional digital asset prime broker FalconX has launched Prime Connect, an exchange settlement solution which enables institutional investors to trade on exchanges while their funds remain in bankruptcy-remote, regulated custody.
The broker’s new offering is aimed at clients seeking a secure exchange trading environment along with access to FalconX’s services including post-trade settlement, institutional-grade credit and portfolio margining, according to a press release.
In a press statement, Vivek Chauhan, Principal Product Manager at FalconX, said: “FalconX’s Prime Connect caters to the critical needs of institutional investors trading in digital assets. 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 says that Prime Connect will allow institutional traders to utilise improved execution and stable credit lines coupled with portfolio margining, which enhances capital efficiency and risk management without compromising asset security as client assets remain in custody, segregated from both the exchange’s and FalconX’s assets.
Institutional trading firms including Hyperithm have so far used FalconX’s Prime Connect, which will be available on other global exchanges in the coming months, to trade on Deribit.
