The crypto industry is rebuilding trust after the FTX collapse, and secure custody is paramount. Enter FalconX's innovative Prime Connect service, designed to give institutional investors the best of both worlds: exchange access and secure, separate asset storage.

Trading with Confidence: Prime Connect

FalconX's Prime Connect allows institutions to trade on exchanges like Deribit (the world's leading crypto options exchange) while keeping their assets safe in FalconX's regulated, bankruptcy-remote custody. This eliminates the risk of exchange insolvency and offers features like post-trade settlement, institutional-grade credit, and portfolio margining.

Security First: A Lesson Learned

The FTX debacle highlighted the importance of robust security measures. Prime Connect addresses this head-on by segregating client assets completely from those of exchanges and trading firms. This fosters trust and empowers institutions to confidently scale their digital asset portfolios.

Early Adopters See the Value

Hyperithm, a leading trading firm, is already leveraging Prime Connect on Deribit. FalconX plans to integrate with more exchanges in the coming months, expanding access to this secure trading solution.

CEX Comeback: Trading Volumes Surge

Interestingly, the Bybit 2024 Institutional Industry Report reveals a significant rise in trading volumes on centralized exchanges (CEXs) like Binance, OKX, and Bybit between October 2023 and March 2024. This suggests a potential return of trust in CEXs, possibly fueled by the enhanced security solutions offered by services like Prime Connect.

DEXs Still Shine

However, decentralized exchanges (DEXs) like Uniswap v3 continue to outpace CEX growth. Uniswap even surpassed a staggering $2 trillion in lifetime trading volume. This highlights the ongoing appeal of decentralized finance (DeFi) and its potential for further growth.

The Future is Secure:

FalconX's Prime Connect represents a significant step towards a more secure future for institutional crypto trading. By prioritizing asset safety and offering seamless exchange access, FalconX is helping to rebuild trust in the crypto market.