Strategic Alliance Between Standard Chartered and FalconX
Standard Chartered is forming a strategic alliance with FalconX, a digital assets prime brokerage, to enhance cryptocurrency offerings specifically tailored for institutional investors. This collaboration will leverage Standard Chartered’s extensive banking framework and foreign exchange expertise, enabling FalconX to provide its institutional clients seamless access to digital currencies. Initially, the focus will be on serving clients in Singapore, with plans for subsequent expansion throughout Asia, the Middle East, and the United States.
Empowering Comprehensive Solutions
Matt Long, FalconX’s General Manager for the Asia-Pacific and Middle East regions, emphasized that this partnership will empower FalconX to offer more comprehensive banking and FX solutions crucial for clients engaging in cryptocurrency transactions. This deal signifies FalconX’s inaugural collaboration with a major traditional bank, coinciding with a growing institutional appetite for cryptocurrencies. Factors such as the recent approval of spot Bitcoin ETFs in the U.S. and intensified global regulatory efforts have sparked this interest.
Anticipating Growth in the Crypto Sector
Standard Chartered anticipates a dramatic growth in the crypto sector, projecting it could reach a valuation of $10 trillion by 2026, which underscores their commitment to investing in the industry’s future. The bank has already initiated several projects, including:
- Introducing crypto custody solutions in the United Arab Emirates.
- Establishing a new entity in the European Union aimed at custody services.
- Partnering with OKX to enable institutional clients to utilize crypto as collateral.
- Pioneering spot trading desks for Bitcoin and Ethereum.
FalconX’s Market Position and Future Plans
For FalconX, this partnership enhances its profile in the international market as it strives to accommodate the surging demand from institutional players. Based in San Mateo, California, FalconX serves a range of high-profile clientele, including large hedge funds, sovereign wealth funds, and asset managers. The company claims to have processed over $1.5 trillion in cryptocurrency trades across a diverse array of 400 tokens.
The company, which has raised capital from esteemed investors such as GIC, Wellington Management, and Tiger Global, was valued at $8 billion during its latest funding round. Recently, they made headlines by:
- Acquiring the crypto derivatives firm Arbelos Markets.
- Successfully executing the first block trade of Solana futures on the CME Group ahead of the contract’s official launch.
Edited by Sebastian Sinclair
