FalconX and Sygnum partner to launch tokenized credit offering for institutional clients

Crypto prime broker FalconX is teaming up with Sygnum Bank to deepen its push into tokenized credit.

Sygnum clients will gain access to its onchain structured credit facility, a tokenized, overcollateralized lending product designed to give investors exposure to digital asset credit markets through a regulated banking channel, according to a release shared with The Block.

Swiss-based Sygnum will act as lender of record via its Desygnate platform, effectively wrapping FalconX’s crypto-native credit strategy in a familiar regulatory framework. The goal is to create something that looks and feels closer to traditional fixed income, even if the underlying rails are blockchain-based.

FalconX’s facility extends credit through a special-purpose vehicle, backed by overcollateralized loans and monitored in real time. M11 Credit and Pareto will handle administration, collateral oversight, and vault infrastructure, while compliance tooling is layered in to meet institutional standards.

The product won’t be available to U.S. investors. Participation is limited to eligible Sygnum Bank clients and is subject to jurisdictional eligibility requirements.

“Tokenization is transforming institutional credit, and institutions are increasingly looking for structured, transparent ways to participate in digital asset lending markets,” said Austin Reid, global head of revenue and business at FalconX. “This partnership expands the reach of on- chain institutional credit through a premier digital asset bank and establishes the blueprint for regulated adoption globally.”

The partnership adds another tokenization use case to Sygnum’s platform at a time when banks are increasingly experimenting with blockchain-based financial products.

“It is encouraging to see how rapidly financial markets are evolving on-chain, and we remain committed to supporting our clients as this new financial infrastructure develops,” said Fatmire Bekiri, head of tokenization at Sygnum, the Swiss-based digital asset banking group.

FalconX is backed by Accel, American Express Ventures, Lightspeed Venture Partners,  Thoma Bravo, Tiger Global Management, and Wellington Management, among others.

Last May, FalconX partnered with Standard Chartered to boost crypto offerings for institutional clients and later rolled out a 24/7 OTC crypto options trading platform. The firm also acquired the $11 billion asset manager 21Shares.

© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

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