FalconX, a leading prime broker focused on the cryptocurrency market, has announced a pivotal new partnership with Standard Chartered, a major global bank. This strategic alliance is designed to provide institutional investors with enhanced access to digital assets, utilizing the infrastructure of traditional banking to facilitate cryptocurrency transactions.
This partnership marks FalconX’s first collaboration with a global traditional bank, highlighting the growing trend of integrating cryptocurrency services into the broader financial sector. The deal aims to provide institutional clients with a more efficient and secure way to manage their crypto investments.
Improving Crypto Settlements with Traditional Banking Infrastructure
The collaboration will see FalconX leverage Standard Chartered’s banking and foreign exchange services, allowing for faster and more efficient fiat currency settlements. This arrangement is particularly beneficial for FalconX’s institutional clients, which include some of the world’s largest asset managers, hedge funds, and family offices.
By utilizing Standard Chartered’s extensive currency network, FalconX will enhance its platform’s capital efficiency, speed up settlement times, and reduce operational risks, according to Matt Long, FalconX’s General Manager of APAC & Middle East. These improvements will provide institutional investors with a smoother experience when executing large-scale crypto transactions.
Initial Focus on Singapore with Expansion Plans
The partnership between FalconX and Standard Chartered will begin in Singapore, a key financial hub in Asia. However, the collaboration is expected to expand to other regions, including the United States, the Middle East, and additional parts of Asia. Luke Boland, the Asia head of fintech at Standard Chartered, indicated that this partnership is driven by the growing demand for digital asset services from institutional investors.
Standard Chartered has been expanding its footprint in the digital asset space, having launched a digital asset custody service in the UAE and entered into a partnership with digital exchange OKX earlier this year. These moves signal the bank’s commitment to growing its digital asset offerings for institutional clients.
The Growth of the Digital Asset Market
The cryptocurrency market reached an impressive $3 trillion in value by November 2021, with projections suggesting it could grow to $10 trillion by 2026. This rapid growth has spurred greater institutional interest in digital assets, prompting traditional financial institutions to adapt and offer services tailored to the needs of crypto investors.
As the digital asset market continues to evolve, banks like Standard Chartered are positioning themselves to cater to the increasing demand for cryptocurrency-related services. The partnership with FalconX is an important step in providing institutional investors with the necessary tools to engage with digital assets securely and efficiently.
FalconX’s Market Impact and Future Prospects
Since its founding in 2018, FalconX has become a leading player in the institutional cryptocurrency space, offering services that include trading, lending, and borrowing of digital assets. The company raised $150 million in a funding round in 2022, which valued it at $8 billion. FalconX’s strong backing from investors like Wellington Management, GIC, and Tiger Global Management positions it well for continued growth.
As institutional adoption of cryptocurrencies grows, partnerships like the one between FalconX and Standard Chartered will play an essential role in bridging the gap between traditional finance and the digital asset world. The future looks promising for both companies as they work together to serve the increasing needs of institutional investors in the evolving crypto landscape.
