Crypto Trader FalconX Unveils Institution-Friendly Custody, Trading and Credit Services

• FalconX unveils new and improved bankruptcy-remote custody with credit lines and off-exchange settlement.
• Derivatives exchange Deribit is the first to integrate FalconX’s Prime Connect.

Cryptocurrency trading firm FalconX has introduced a new prime brokerage service to allow institutions to trade on exchanges while their funds remain in regulated, bankruptcy-remote custody.

FalconX’s Prime Connect, unveiled on Tuesday, also includes post-trade settlement, institutional-grade credit, and portfolio margining, the company said in a press release shared with CoinDesk. Deribit, the world's leading crypto options exchange, is the first to integrate FalconX's prime broking and custody solution.

In the wake of FTX's collapse, the cryptocurrency industry has realized the need to keep client assets in custodial setups that are completely segregated from those of exchanges, brokers, and trading firms.

“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,” Vivek Chauhan, product manager at FalconX said in a statement.

A group of trading firms, such as Hyperithm, are using Prime Connect to trade on Deribit. , FalconX said the services will be integrated with other exchanges in the coming months.