Crypto prime broker FalconX and global bank Standard Chartered have formed a strategic partnership to serve institutional crypto investors.

The partnership marks FalconX's first collaboration with a global traditional bank and suggests growing institutional demand for digital assets through conventional finance channels.

“FalconX will leverage Standard Chartered's banking and foreign exchange services - including its access to a wide range of currencies - to support its institutional clients,” says Matt Long, FalconX's general manager of APAC & Middle East.

"Our clients will be able to engage more efficiently in fiat currencies settlements, which means a lot faster settlement, better capital efficiency and overall reduced operational risk," adds Matt Long.

The California-based firm specializing in crypto-driven prime-brokerage services announced that its clientele includes some of the globe's biggest asset managers, sovereign wealth funds, hedge funds, and family offices.

Standard Chartered noted that increased digital asset utilization by institutional clients was the catalyst for the partnership.

Luke Boland, Standard Chartered's fintech leader for Asia, mentioned that the bank's partnership with FalconX would initially begin in Singapore and subsequently expand to additional nations in Asia, the Middle East, and the U.S.

The multinational bank based in Hong Kong has been growing its digital asset operations. Last year, the bank launched a digital asset custody service in the United Arab Emirates. In April, it collaborated with digital exchange OKX to allow institutional clients to utilize cryptocurrencies as collateral.

In November, the worldwide cryptocurrency market exceeded $3 trillion in market capitalization after the election of crypto-supportive Donald Trump as president of the US, igniting hopes for a prosperous period for digital assets.

Standard Chartered anticipates that the total worth of digital assets will hit $10 trillion by 2026.

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Established in 2018, FalconX was most recently valued at $8 billion after a $150 million funding round in 2022. It is supported by investors such as Wellington Management, the Singapore sovereign wealth fund GIC, and Tiger Global Management.