FalconX Introduces Prime Brokerage Service for Institutional Investors Trading on Exchanges

Cryptowire Unveils Prime Connect Service for Institutional Investors

Cryptocurrency trading firm FalconX has introduced a new prime brokerage service called Prime Connect. This service is specifically designed to assist institutional investors in their trading activities on exchanges while ensuring the security of their funds in regulated, bankruptcy-remote custody.

Features of Prime Connect:

• Post-trade settlement
• Institutional-grade credit
• Portfolio margining

In a recent announcement, FalconX revealed that Deribit, a leading cryptocurrency options exchange, is the first platform to integrate FalconX’s prime broking and custody solution.

Importance of Prime Connect in the Crypto Industry:

The launch of Prime Connect comes at a time when the cryptocurrency industry is emphasizing the safeguarding of client assets in separate custodial setups. The collapse of FTX has underscored the importance of robust security measures and asset segregation.

Vivek Chauhan, the product manager at FalconX, expressed excitement about the launch of Prime Connect and the collaboration with Deribit, stating, “We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services to institutions.”

Hyperithm and other trading firms have already started using Prime Connect to facilitate trading activities on Deribit. FalconX plans to expand its services to more exchanges in the near future, aiming to reach a broader investor base.

Luuk Strijers, CEO of Deribit, commented, “We are thrilled to be the first exchange partnering with FalconX to launch its off-exchange settlement solution. This collaboration will enhance client trading capabilities and financial flexibility for institutional investors.”

CEX Trading Volume Trends:

Centralized cryptocurrency exchanges (CEXs) such as Binance have experienced significant growth in trading volumes. According to Bybit’s 2024 Institutional Industry Report, OKX saw a 278% increase, followed by Binance with a 239% surge. Bybit exchange also recorded a 264% growth in trading volumes.

Despite the impressive growth of CEXs, decentralized exchanges (DEXs) have shown even more rapid expansion. Uniswap v3, a leading DEX, witnessed a 320% increase in volumes, surpassing $2 trillion in lifetime trading volume.