FalconX
From Wikipedia, the free encyclopedia
Prabhakar Reddy
| Company type | Private |
|---|---|
| Industry | Financial services, Cryptocurrency |
| Founded | 2018 |
| Founders | Raghu Yarlagadda Prabhakar Reddy |
| Headquarters | San Mateo, California, U.S. |
Key people | Raghu Yarlagadda (CEO) |
| Products | Prime brokerage, digital asset trading, derivatives, credit |
| Website | falconx |
FalconX is an American cryptocurrency prime brokerage and digital asset trading platform headquartered in San Mateo, California. The company provides trading, credit, and clearing services to institutional investors, including hedge funds, asset managers, and family offices.[1]
FalconX is known for being one of the first dedicated prime brokers in the cryptocurrency sector. It achieved a valuation of $8 billion in 2022.[2] In 2025, the company expanded its operations significantly through the acquisition of Arbelos Markets and 21Shares.[3]
Funding
FalconX was founded in 2018 by Raghu Yarlagadda and Prabhakar Reddy. Yarlagadda previously worked at Google and held product roles at other technology companies, while Reddy was an investor at Accel.[4] The founders launched the company to address fragmentation and infrastructure gaps for institutional investors in the crypto market.
In May 2020, the company raised $17 million in a seed round backed by Accel, Coinbase Ventures, and Fenbushi Capital. At the time, the company reported generating $7 billion in trading volume over a 10-month period.[4]
The company experienced rapid growth during the 2021 cryptocurrency market expansion. In March 2021, FalconX raised $50 million in Series B funding led by Tiger Global Management and B Capital Group.[5] Five months later, in August 2021, the company closed a $210 million Series C round at a valuation of $3.75 billion.[6]
In June 2022, despite a broader downturn in the cryptocurrency markets ("crypto winter"), FalconX raised $150 million in Series D funding led by GIC and B Capital. This round valued the company at $8 billion.[1][7]
Acquisitions
In 2025, FalconX executed a series of strategic acquisitions to consolidate its position in the institutional market:
- Arbelos Markets: In January 2025, FalconX acquired Arbelos Markets, a specialist in cryptocurrency derivatives and options trading, to bolster its institutional derivatives offerings.[8]
- Monarq Asset Management: In June 2025, the company acquired a majority stake in Monarq Asset Management to strengthen its active management capabilities.[3]
- 21Shares: In October 2025, it was reported that FalconX had agreed to acquire 21Shares, a leading issuer of cryptocurrency exchange-traded products (ETPs), a deal that was completed in November 2025, marking a significant entry into the asset management sector.[9][3]