Crypto prime brokerage FalconX raises $150 million

Rick Steves

Institutional-oriented digital asset platform FalconX has raised $150 million in a Series D financing round, valuing the company at $8 billion.

Led by GIC and B Capital, the fundraiser also saw participation from Thoma Bravo, Wellington Management, Adams Street Partners and Tiger Global Management.

The previous Series C raise, in August 2021, valued the company at “only” $3.75 billion. The new round more than doubles the valuation and totals $430 million raised since the beginning.

In Q1 2022, FalconX had the strongest quarter of customer onboarding in the company’s history, despite the volatile public and private markets. This growth is driven by demand from a diverse range of institutional market customers who are looking for a reliable execution platform in volatile crypto markets, capital efficiency to scale returns and strong risk management.

FalconX expects to see all assets within the finance industry going through a transformation, leverage tokenization and become truly global, with new added value in industries where 24/7 liquidity and credit did not exist previously. The firm is creating an underlying infrastructure required to not just access crypto but pave the way for traditional assets such as equities to be tokenized.

A Crypto prime brokerage that does not take on market risk

Raghu Yarlagadda, CEO and Founder of FalconX, said: “FalconX is one of the very few crypto prime brokerages who do not take on market risk, so we’re not in conflict with our clients and their trading strategies. In light of recent market conditions, this is extremely valuable to our clients who demand a reliable market infrastructure provider. This investment is a validation of our client-first focus, the health and strength of the crypto industry, and the move towards digital asset transformation.”

Danny Rosenthal, Chief Executive Officer of Apex Crypto, commented: “FalconX is a key liquidity provider for Apex Crypto and a key partner that contributes to best pricing. We are proud to partner with FalconX to provide strong markets for our customers, representing over 4.5 million cryptocurrency accounts, in a seamless and capital efficient manner. We look forward to our future with FalconX.”

Rashmi Gopinath, General Partner, B Capital, said: “We partner with companies that will have lasting impacts on the industries and customers they serve. As a tech-first digital asset infrastructure platform, FalconX provides a holistic product offering paired with unparalleled execution that supports over 70M+ transactions on a monthly basis. They are well-positioned to lead the ongoing institutional transition to digital assets for years to come.”

FalconX is not following the hiring freeze narrative as the firm is currently hiring across departments, having appointed key executives like Suzy Walther (formerly of Carta) and Jon Kaplan (formerly of Pinterest).

Last month, FalconX became the first CFTC-registered crypto-focused Swap Dealer and one of the first crypto-focused Primary Level Members of the International Swaps & Derivatives Association (ISDA). As a result of adhering to these regulatory and industry standards, U.S. institutions can now engage with this regulated product in a predictable and familiar way.

FalconX has recently gone live with its crypto staking-yield swap.

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