Broker FalconX buys crypto derivatives exchange Arbelos Markets

The deal was financed with a combination of shares and cash

03.01.2025 - 12:30

3 min

What’s new? Digital asset broker FalconX has bought crypto derivatives platform Arbelos Markets for an undisclosed sum, marking one of the first deals in the crypto sector in the new year. It was announced by FalconX co-founder and CEO Raghu Yarlagadda. While details were not disclosed, Bloomberg cited sources as saying it was funded with a combination of brokerage shares and cash.

Source: X.com

What else is known? According to FalconX’s executive, the acquisition will create additional value for institutional clients amid the growing popularity of cryptocurrency-based spot exchange-traded funds (ETFs) launched in the United States in 2024.

Yarlagadda clarified that many institutional clients have entered the crypto derivatives market for capital efficiency, access to 24/7 trading, and increased liquidity. He added:

“This isn’t just about scaling FalconX — it’s about building the foundation for the next phase of crypto market growth. A healthy, transparent derivatives market is key to long-term institutional confidence.”

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Founded in 2018, FalconX is a leading institutional cryptocurrency broker and has traded over 400 tokens worth over $1,5 trillion for at least 600 institutions. The firm has offices in Silicon Valley, New York, London, Hong Kong, Bangalore, Singapore, and Valletta.

Last May, FalconX paid a $1,8 million fine to the US Commodity Futures Trading Commission (CFTC) for failing to register. The settlement agreement required FalconX to stop providing services to US residents.

FalconX was also affected by the November 2022 bankruptcy of FTX; the broker held 18% of its cash on the exchange.

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Arbelos was launched in 2023 by crypto traders and former bankers Joshua Lim and Shiliang Tang. Lim previously headed the trading desks of Galaxy Digital and the now-bankrupt Genesis, while Tang served as chief investment officer at LedgerPrime (now operating as MNNC Group).

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