Australia-licensed MHC Digital Group has secured a partnership with the crypto prime broker FalconX to deliver digital asset derivatives to the Australian wholesale sector. This collaboration, announced Monday, will see MHC’s trading platform, MHC Markets, launch “a full array of digital asset derivatives, options, and structured products.”
Focusing on Australian Institutions
MHC Digital Group, operating under an Australian Financial Services (AFS) licence, was established in 2020 by Australian venture capitalist Mark Carnegie, who acts as Executive Chairman. Headquartered in Australia, MHC Markets, set to launch in the fourth quarter of 2024, aims to provide crypto liquidity and trading services.
In February 2022, MHC Digital Finance, a subsidiary of MHC Digital Group, was intended to be acquired by Intraco Singapore. However, this acquisition was subsequently terminated.
“Teaming up with MHC, which has a deep understanding of Australian investors and a proven history in digital assets, is a major milestone for FalconX’s growth in the APAC region,” commented Matt Long, General Manager for APAC and the Middle East at FalconX.
“MHC’s industry knowledge and innovative strategies, combined with our derivatives expertise, will enable MHC to offer Australian wholesale investors a broad range of digital asset products in Australia’s advanced capital markets.”
Growing Demand for Crypto Prime Brokers
Regarding crypto prime brokerage, FalconX ranks among the leading providers, boasting an $8 billion valuation following a $150 million investment in 2022 from backers like Tiger Global, GIC, and B Capital. Founded in 2018, the company has secured a total of $430 million in various funding rounds. It also established a dedicated forex desk in London, providing access to 20 FX pairs.
Earlier this year, FalconX acquired Arbelos Markets, a crypto derivatives startup launched in 2023. Additionally, Ripple recently purchased Hidden Road, another crypto prime broker, for $1.25 billion.
The collaboration between MHC and FalconX arrives as the demand for cryptocurrencies surges in Australia, with rising institutional interest highlighted by AMP Capital’s upcoming Bitcoin futures investments in late 2024.
“Our combined expertise creates a formidable offering for Australian wholesale investors, who have a history of leveraging derivatives in traditional asset classes,” stated Edward Carroll, Head of MHC Markets.
