FalconX Unveils 24/7 OTC Crypto Options Trading Platform
Institutional digital asset prime broker FalconX has launched a groundbreaking 24/7 trading platform called Electronic Options. By combining the efficiency of electronic execution with the tailored capabilities of over-the-counter (OTC) crypto options trading, the platform aims to address longstanding challenges in the crypto options market.
The crypto options industry is expanding rapidly, driven by hedge funds, market makers, and fintech platforms seeking advanced hedging, volatility, and arbitrage strategies. However, FalconX highlights inefficiencies caused by fragmented OTC markets and restricted access via exchanges. With its new Electronic Options platform, FalconX seeks to eliminate these barriers by providing round-the-clock execution of options strategies through an intuitive user interface and API.
Tackling Market Fragmentation with Technology
Josh Lim, FalconX's Global Co-Head of Markets, emphasized the platform's significance for institutional players. "The options market is the next major frontier in institutional crypto", he said. "We built this platform to address the longstanding challenges of fragmented liquidity and lack of round-the-clock access. With FalconX Electronic Options, clients get the same execution quality our OTC desk is known for - now in a format designed for scale, distribution, and true 24/7 access."
At its core, Electronic Options leverages Request for Quote (RFQ) models inspired by traditional financial markets, such as FX, rates, and credit. The platform is designed to meet institutional-grade standards with features like proprietary principal liquidity for competitive pricing, a matrix-style builder for multi-leg strategies, and seamless integration for users.
Initial Support for BTC, ETH, SOL, and HYPE
At launch, the platform provides options trading for Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and HYPE, with plans to incorporate additional cryptocurrencies in the future. Backed by prominent investors such as Accel, GIC, and Tiger Global Management, the initiative builds on FalconX’s robust liquidity network and extensive trading infrastructure, which ranks among the largest institutional options desks globally.
One early integration partner, crypto trading technology provider Talos, has already adopted the solution via API. Talos CEO Anton Katz commented on the innovation: "FalconX's Electronic Options platform sets a new bar for institutional access to crypto derivatives, combining deep liquidity with best-in-class execution infrastructure. This launch is a major step forward in scaling professional crypto markets and expanding access to sophisticated tools across the ecosystem."
Rising Interest in Crypto Options
FalconX’s move aligns with growing interest in the crypto options market. Earlier this month, CME Group announced plans to introduce options on its SOL and XRP futures products, alongside its existing BTC and ETH offerings. Additionally, Coinbase recently completed its acquisition of crypto derivatives exchange Deribit, now positioned as the global leader in crypto options volume and open interest.
Regulatory developments have also contributed to the sector's evolution. Last year, the Securities and Exchange Commission approved options trading for multiple spot Bitcoin ETFs, with subsequent proposals submitted for options tied to spot Ethereum ETFs.
FalconX's new platform represents a major leap forward in addressing inefficiencies in crypto options trading, signaling an evolution in the tools available to institutional investors. By combining cutting-edge technology with robust liquidity, FalconX aims to redefine access to crypto derivatives.
