In a significant development for Australia's financial landscape, MHC Digital Group, licensed in the country, has joined forces with FalconX, a prominent crypto prime broker. This collaboration aims to introduce an extensive range of digital asset derivatives tailored for the Australian wholesale market. The newly integrated offerings on MHC’s trading platform, MHC Markets, are expected to enhance institutional investment opportunities within the burgeoning digital asset sector.

MHC and FalconX Forge Ahead in Digital Asset Trading

Established by venture capitalist Mark Carnegie, MHC Digital Group operates under an Australian Financial Services license, positioning itself as a key player since its inception in 2020. With the launch of MHC Markets in Q4 2024, the company has been focusing on providing liquidity and trading services in the cryptocurrency space. Although a subsidiary faced acquisition challenges in 2022, this partnership marks a new chapter for the group.

This alliance comes at a pivotal moment as demand for cryptocurrencies continues to grow across Australia. FalconX, valued at $8 billion following a successful funding round in 2022, brings substantial expertise to the table. Founded in 2018, the firm has raised over $430 million and recently expanded its services with a dedicated forex desk in London. Notably, FalconX acquired Arbelos Markets earlier this year, further solidifying its position in the market.

The collaboration between MHC and FalconX aligns with increasing institutional interest in digital assets, highlighted by AMP Capital's introduction of Bitcoin futures investments in late 2024. Edward Carroll, Head of MHC Markets, emphasized that their combined strengths offer a robust solution for wholesale investors familiar with utilizing derivatives in traditional markets.

Key players include MHC Digital Group, led by Mark Carnegie, and FalconX, represented by Matt Long, General Manager for APAC and the Middle East. Their strategic move is set against the backdrop of expanding digital asset adoption in Australia.

From a journalist's perspective, this partnership underscores the evolving nature of financial markets, where innovation meets regulation. It highlights how collaborations can bridge gaps between traditional finance and emerging technologies, offering more sophisticated products to meet investor demands. As institutions increasingly embrace cryptocurrencies, such alliances pave the way for broader market acceptance and integration into mainstream investment strategies.