FalconX, a crypto prime broker, has reassured its clients that its financial health remains strong despite exposure to collapsed crypto exchange FTX. In an email sent to clients, FalconX said that its balances locked on FTX represented 18% of its unencumbered cash equivalents, but added that this ratio was within its counterparty exposure limits.
Furthermore, FalconX noted that it had no exposure to FTX's sister hedge fund Alameda Research, trading firm Genesis, or crypto lender BlockFi. The company also highlighted its strong financial position, stating that it is "one of the best-capitalized firms in digital assets" with "decades of runway" and a debt-to-equity ratio of 4%. Additionally, 80% of its balance sheet is in regulated U.S. banks.
Despite the market turmoil, FalconX said that its market share has increased as clients seek out proven partners. The company reported that its volumes have grown 80% month-over-month and that it continues to trade billions of dollars in daily volume with clients. "We remain confident in the future of crypto and are committed to leading the industry's maturation," FalconX said.