Digital Asset Brokerage FalconX Expands Into Crypto Derivatives With New Acquisition

Key Points:

• Digital asset brokerage FalconX is in advanced talks to acquire crypto derivatives startup Arbelos Markets.
• The acquisition reflects a trend of mergers in the crypto sector driven by President-elect Donald Trump’s administration.

According to Bloomberg, FalconX, a leading digital-asset trading and brokerage firm, is reportedly in advanced talks to acquire Arbelos Markets, a crypto derivatives startup founded in 2023 by industry veterans Joshua Lim and Shiliang Tang.

Read more: FalconX Prepares for 2025 Acquisitions After Record Growth

Digital Asset Brokerage FalconX Nears Acquisition of Arbelos Markets

The deal, which is said to be announced imminently, is a mix of cash and FalconX stock, according to sources familiar with the matter. Financial terms, including the valuation of Arbelos, were not disclosed.

The deal is in line with expectations that the victory of President-elect Donald Trump would trigger a rush of mergers within the digital asset industry. Trump has promised to make the U.S. a global centre for digital assets and says he will put regulators in place who will be friendly to the fledgling industry.

In October, Raghu Yarlagadda, Co-Founder and Chief Executive Officer of digital asset brokerage FalconX, said consolidation was coming to the crypto space and that his firm was interested in acquiring others. FalconX’s announcement comes on the heels of Stripe’s $1.1 billion acquisition of stablecoin firm Bridge, a deal many saw as a harbinger of more action in the space.

Arbelos and FalconX: Leading the Charge in Digital Asset Innovation

Arbelos Markets, a liquidity provider in crypto derivatives, raised $28 million in a May 2024 funding round led by Dragonfly Capital. Other investors were FalconX, Circle Ventures, Deribit, Paxos, and StarkWare.

Lim and Tang bring immense experience to Arbelos, with Lim previously leading trading at Galaxy Digital and Genesis Global Trading, while Tang was Chief Investment Officer at LedgerPrime.

San Mateo-based digital asset brokerage FalconX, founded in 2018, was last valued at $8 billion after it raised $150 million in funding in 2022. Its investors include Tiger Global, GIC and B Capital.