US crypto prime broker FalconX obtains approval from ISDA and NFA

Rick Steves

FalconX operates as a regulated counterparty, which allows partners to offer crypto derivatives to their client base with well-managed risk exposure.

Digital asset platform FalconX has announced it has become the first and only cryptocurrency swap dealer registered with the National Futures Association (NFA) and one of the first crypto-focused Primary Level Members of the International Swaps & Derivatives Association (ISDA).

Catering to institutional investors, FalconX sees the registration with ISDA and NFA as a vital move for its prime brokerage business as it now offers the only platform that gives institutional investors access to the fast-growing OTC crypto derivatives market to conduct safe and regulated trading.

Bringing regulated derivatives trading to the U.S

Raghu Yarlagadda, Co-Founder and Chief Executive Officer at FalconX, commented: “This is a tremendous opportunity to bring regulated derivatives trading to the U.S. With this registration, we’re creating a venue for our clients to trade OTC crypto derivatives, while delivering the trust and security our institutional partners expect.”

“The crypto derivatives ecosystem is at a critical growth juncture, and we are very excited to help accelerate its trajectory by providing simplified, regulated access to OTC derivatives for our institutional clients. As a principal dealer, we always have our clients’ best interests in mind. It’s also a huge opportunity for us to be a market leader while offering our signature service to a wider range of investors.”

NFA and ISDA registration will allow FalconX clients to enter into forwards, options, and swap transactions without incurring changes to their operational processes using FalconX’s established standards for timing, valuation and confirmation.

FalconX operates as a regulated counterparty, which allows partners to offer crypto derivatives to their client base with well-managed risk exposure.

Most of the crypto derivatives trading volume occurs on exchanges outside the United States. Now, FalconX will be able to serve domestic institutional investors, who have had limited access until now.

FalconX is the first registered U.S. crypto swap dealer, offering complete digital asset management on the only crypto trading platform built exclusively for institutions.

The firm is the first primary member of the ISDA with a crypto focus. Because of this, FalconX will collaborate with ISDA in developing contractual and operational standards for crypto derivatives, creating guidelines for the broader cryptocurrency industry on how to provide secure, regulated access to OTC derivatives.

FalconX partner brokers and institutional investors to execute trading, credit, and clearing all in one place. Its crypto-as-a-service offering powers leading banks, FinTech institutions, and investment applications to easily add crypto to their product offerings.

Headquartered in San Francisco and with offices in New York, Chicago, Bengaluru, and Malta, FalconX is backed by Accel, Altimeter Capital Management, American Express Ventures, Coinbase Ventures, Lightspeed Venture Partners and Tiger Global Management.

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