FalconX Acquires Arbelos Markets to Strengthen Crypto Derivatives Offering
FalconX, one of the leading digital asset brokerages, has acquired crypto derivatives startup Arbelos Markets, marking a significant milestone for the crypto industry in 2025. The deal, announced by FalconX co-founder and CEO Raghu Yarlagadda on January 2, underscores the brokerage’s ambition to bolster institutional confidence in the crypto derivatives market.
Details of the Acquisition
The financial terms of the deal remain undisclosed, but a December 31 report from Bloomberg suggested the acquisition would be financed through a mix of FalconX stock and cash. Yarlagadda highlighted the strategic value of combining FalconX’s resources with Arbelos’ advanced trading platform.
“This isn’t just about scaling FalconX — it’s about building the foundation for the next phase of crypto market growth,” Yarlagadda stated. “A healthy, transparent derivatives market is key to long-term institutional confidence.”
Why It Matters
Crypto derivatives have become a key area of focus for institutional investors, offering capital efficiency, 24/7 trading access, and deeper liquidity. With this acquisition, FalconX aims to enhance its offerings by leveraging Arbelos’ innovative trading capabilities and FalconX’s balance sheet strength and regulatory readiness.
This move follows a broader industry trend of institutional clients expanding into crypto derivatives, especially after the introduction of U.S. spot crypto exchange-traded funds (ETFs) last year.
Arbelos Markets: A Rising Star
Founded in 2023 by former Wall Street veterans Joshua Lim and Shiliang Tang, Arbelos Markets quickly established itself as a leading player in the crypto derivatives space. Lim previously led trading desks at Galaxy Digital and Genesis Global Trading, while Tang served as chief investment officer at LedgerPrime.
Arbelos’ expertise and innovation in the derivatives market complement FalconX’s infrastructure, positioning the combined entity to address the growing demands of institutional clients.
FalconX’s Market Leadership
Founded in 2018, FalconX claims to be the world’s largest crypto prime brokerage, having processed over $1.5 trillion in trading volume across 400 tokens for more than 600 institutions. The firm operates globally with offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta.
Despite challenges, including a settlement with the U.S. commodities regulator in May 2024, which required FalconX to cease offering services to U.S. residents, the company has continued to expand its international footprint.
Resilience Amid Market Turmoil
FalconX notably weathered the FTX collapse in November 2022, with assets locked on FTX representing 18% of its “unencumbered” cash equivalents at the time. The firm’s ability to navigate such crises has bolstered its reputation as a resilient player in the volatile crypto landscape.
Outlook for the Crypto Derivatives Market
With the acquisition of Arbelos Markets, FalconX aims to drive growth in the crypto derivatives sector by addressing key challenges such as transparency, liquidity, and regulatory compliance. This move signals a broader shift toward institutional-grade solutions in the crypto industry, paving the way for the next phase of market maturity.
Stay tuned as FalconX integrates Arbelos Markets into its operations, setting the stage for a stronger, more reliable crypto derivatives market.
