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FalconX Launches Prime Connect, A Fully Integrated Solution to Mitigate Exchange Counterparty Risk, with Deribit as First Integration

PRNewswire April 23, 2024

Offering Includes Custody, Trading, Credit, and Off-Exchange Settlement

SAN MATEO, Calif., April 23, 2024 /PRNewswire/ — 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. This new offering marks a pivotal next step in the development of the cryptocurrency industry’s market structure as it is an industry-leading solution for clients seeking a secure exchange trading environment along with access to FalconX’s suite of prime services including post-trade settlement, institutional-grade credit, and portfolio margining.

“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.”

Historically, institutional investors held capital on exchanges and managed risk at an exchange-level, limiting their ability to scale. 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.”

Leading 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. Exchanges integrated with Prime Connect can tap into a network of premier institutional traders seeking these same transformative benefits.

“In the fast-paced world of crypto trading, having a reliable partner like FalconX that provides comprehensive market access along with robust credit and portfolio-margining is invaluable,” said Jonggu Lee, Chief Investment Officer at Hyperithm. “The launch of FalconX’s Prime Connect will mitigate counterparty risk and enhance our operational workflow. We are excited to leverage this platform to its full potential.”

Prime Connect leverages FalconX’s regulated custody solution, ensuring that client assets held in FalconX Custody are bankruptcy-remote. While many solutions solely focus on security, FalconX’s custody is designed to seamlessly integrate with its suite of prime brokerage services including provision of credit.

For more information: https://www.falconx.io/services/prime-connect  

About FalconX

FalconX is the largest digital assets prime brokerage for the world’s leading institutions and the first CFTC registered cryptocurrency swap dealer. We provide the most comprehensive access to global digital asset liquidity. Our 24/7 dedicated team for account, operational and trading needs enables investors to navigate markets around the clock.

The company is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management and Wellington Management. FalconX has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore and Valletta. For more information visit falconx.io or follow FalconX on X and LinkedIn.

About Deribit

Deribit is a centralized, institutional-grade crypto derivatives exchange for options and futures trading based in Panama City, Panama. Deribit’s state-of-the-art infrastructure offers instantaneous price discovery, low latency trading, advanced risk mitigation services, and deep liquidity via its network of top-tier market makers. Led by a team with decades of experience in options trading across all markets, Deribit facilitates a significant majority of all crypto options trading and has robust proof of assets and liabilities procedures to ensure the exchange is held to the highest of standards.

For additional information, visit: https://www.deribit.com/

About Hyperithm Group

Since its foundation in 2018, Hyperithm, operating from Japan and Korea, has been heavily involved in developing its crypto asset wealth management business for an array of institutional investors as well as others. March 2022 marked another major milestone as Hyperithm completed a Series B bridge round funding from Coinbase Ventures. In May 2022, the company began managing Japan’s first Bitcoin-denominated fund under the Qualified Institutional Investors Exemption Program. In June 2022, we established a Web3 ecosystem fund with the aim of revitalizing the Web3 ecosystem and have been actively investing in promising projects that seek to positively contribute to the growth of Web3.

For more information, visit: https://hyperithm.jp

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