Advising FalconX Holdings Limited on $1bn warehouse financing partnership with Ethena

Our Cayman Islands Corporate and Finance teams recently acted as Cayman Islands legal counsel to FalconX Holdings Limited ('FalconX') in connection with its $1bn secured lending facility acting through an SPV with Ethena. The facility will allow FalconX through the SPC to remain as lender of record on its underlying loan book while deploying capital from the assets backing USDe into overcollateralized institutional credit. 
 
Through this partnership, FalconX has secured a new source of capital to lend to its institutional clients, further strengthening its position in the market as a leading institutional trading firm, while providing Ethena access to reserves backing USDe that are not dependent on futures trading. 
 
The transaction was led on the corporate side by partner Melissa Lim and associate Olivia Fielding and on the finance side by partner Olga Sologub and senior counsel Jessica Mbanda, with further assistance from senior counsel Katie Fleming and associate Yang Shu, all based in our Cayman Islands office.
 
We acted alongside Cahill Gordon & Reindel LLP, who provided US legal counsel to FalconX.