The FINMA-regulated Sygnum Bank and U.S. institutional crypto broker FalconX announced a partnership. As a result, it gives institutional and high-net-worth private clients access to tokenized, overcollateralized credit.
Specifically, Sygnum clients gain access to the FalconX Credit Vault through the bank's proprietary tokenization platform Desygnate. This credit vehicle runs on Ethereum and currently manages 128.94 million USD. Sygnum acts as the legal lender of record and represents its clients vis-à-vis the FalconX Credit Vault. As a result, the structure combines a FINMA-regulated banking interface with an on-chain credit structure. Previously, this kind of product stood open mainly to DeFi-oriented investors. However, the product is not available to U.S. persons and institutions, and further restrictions apply depending on jurisdiction.
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How the credit vehicle is structured
The FalconX Credit Vault is designed as an open-ended fixed-rate loan, although its interest rate adjusts monthly. In addition, an equity tranche serves as a protective buffer for senior investors. The collateral consists of assets from the FalconX credit ecosystem. Furthermore, tokenized money market funds such as BlackRock BUIDL and the Superstate Short-Term Treasury Fund (USTB) are used as trading collateral.
Operationally, the structure relies on several infrastructure partners. For example, Pareto provides the on-chain platform for fixed-income investments. Meanwhile, M11 Credit, the credit investment arm of Maven 11, takes on the duties of administrative and collateral agent. Keyring also handles compliance checks and access controls so that only authorized wallets can access the vault. Moreover, a special purpose vehicle (SPV) legally separates the assets and therefore protects investors in the event of insolvency.
Technically, the vault runs on Ethereum and combines real-time collateral monitoring with automated margin management. In addition, a cross-exchange liquidation system is intended to protect collateralization during market dislocations. On the Sygnum side, access takes place through Desygnate, the bank's end-to-end tokenization platform. It has been in operation since 2020 and at the same time serves as an OTF operator under Art. 42a FinMIA.
What the cooperation means for institutional credit
Through the partnership, Sygnum positions itself as a regulated access point for institutional on-chain credit. More than 2,000 high-net-worth private individuals and institutional clients worldwide already form part of the bank's clientele. In addition, it offers Sygnum Protect with over 1 billion USD AUM as of March 2026. The bank also runs Sygnum Select, launched in February 2026 with around 200 million USD AUM at launch. Therefore, the FalconX cooperation expands this spectrum with a yield-oriented product beyond classic custody and treasury solutions.
For FalconX, the structure also follows a clear distribution logic. For instance, the prime broker extended institutional credit of 2.5 billion USD in 2024. With the Credit Vault, it currently holds a 0.49% market share in the tokenized credit market of 26.53 billion USD. Through Sygnum, FalconX therefore taps into a regulated distribution channel in Europe. As a result, it can scale in the region without having to build its own banking license.
For traditional institutions, the model also lowers regulatory hurdles. Instead of interacting directly with DeFi protocols, they receive a bank-intermediated product with an established supervisory chain. Indeed, this very obstacle has so far kept many family offices and asset managers from entering tokenized credit.
Crypto credit structures gain momentum
The cooperation fits into a series of institutional steps by both firms. For instance, Sygnum previously closed a syndicated bond with Canadian provider Ledn for BTC-collateralized tokenized private credit. As a result, the bank gained experience with crypto-collateralized structures. The FalconX Credit Vault, in turn, was jointly launched by FalconX and Pareto in March 2025. According to Pareto data, the vault subsequently became the largest RWA collateral position on the DeFi credit protocol Morpho. In addition, risk specialist Gauntlet operates a leveraged FalconX RWA strategy via Pareto.
FalconX is also pursuing an aggressive growth path. Founded in 2018, the company reached a valuation of 8 billion USD in a Series D financing round in 2022. Moreover, in 2025 it acquired three firms: derivatives trader Arbelos Markets, a majority stake in Monarq Asset Management, as well as Swiss ETP provider 21Shares. In March 2026, media also reported on IPO discussions with several investment banks. Cantor was named as a possible lead underwriter, although a formal mandate is still pending.
