3rd January 2025 – (California) Digital asset brokerage FalconX has announced the acquisition of crypto derivatives platform Arbelos Markets, marking one of the first significant crypto acquisition deals of 2025. The news was confirmed by FalconX’s co-founder and CEO, Raghu Yarlagadda, in a post on X on January 2, following a report from Bloomberg.
While the financial details of the transaction remain undisclosed, a prior report from Bloomberg on December 31 suggested that the deal would likely be financed through a combination of FalconX stock and cash, according to sources familiar with the matter.
Yarlagadda stated that the acquisition positions FalconX to better serve its institutional clients by integrating Arbelos’ trading platform with FalconX’s balance sheet and regulatory readiness. He highlighted the growing interest in the crypto derivatives market, noting that many institutional clients are expanding into this area for capital efficiency, continuous trading access, and improved liquidity.
“This isn’t just about scaling FalconX—it’s about building the foundation for the next phase of crypto market growth,” Yarlagadda remarked. He emphasised the importance of a healthy and transparent derivatives market for fostering long-term institutional confidence.
Founded in 2018, FalconX claims to be the world’s largest crypto prime brokerage, executing over $1.5 trillion in trading volume across more than 400 tokens for at least 600 institutions. In contrast, Arbelos Markets was launched in 2023 by former bankers Joshua Lim and Shiliang Tang, both of whom have extensive experience in the financial sector.
Prior to founding Arbelos, Lim led trading desks at Galaxy Digital and the now-defunct Genesis Global Trading, while Tang served as chief investment officer at LedgerPrime, now known as MNNC Group.
Notably, FalconX faced regulatory challenges last May when it paid $1.8 million in disgorgement and penalties to the US commodities regulator for failing to register as a futures commission merchant. This settlement required the firm to cease offering services to US residents.
With offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta, FalconX has demonstrated resilience, notably surviving the collapse of FTX in November 2022, despite having 18% of its “unencumbered” cash equivalents locked on the platform at that time.
