FalconX, a digital assets platform for institutional investors, today announced a $150M Series D financing round, valuing the company at $8 billion. The round was led by GIC and B Capital, with participation from Thoma Bravo, Wellington Management, Adams Street Partners and Tiger Global Management. This venture round more than doubles the value of FalconX after its Series C raise in August 2021 that valued the company at $3.75 billion. FalconX has now raised $430 million+ from the world’s leading investors, making it one of the most valuable crypto prime brokerages in the world.
Momentum Is Strong Throughout Recent Market Stress Tests
There has been a definitive flight to quality in both the public and private markets – with investors focused on strong, profitable and sustainable companies. 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 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,” said Raghu Yarlagadda, CEO and Founder of FalconX.
FalconX At the Forefront of Digital Asset Transformation
We are in the early stages of a shift towards digital asset transformation and crypto is the first use-case. Soon, every asset will go through a transformation, leverage tokenization and become truly global. This will unlock unparalleled value in industries where 24/7 liquidity and credit did not exist previously. From the world’s largest hedge funds to fintech companies, boardrooms are focused on digital asset transformation. FalconX is driving this transformation by creating the underlying infrastructure required to not just access crypto but pave the way for traditional assets such as equities to be tokenized.
“FalconX is a key liquidity provider for Apex Crypto and a key partner that contributes to best pricing,” said Danny Rosenthal, CEO of Apex Crypto. “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.”
Premier Talent Is Hungry to Be Involved in the Early Stages of Crypto
While there has been a public narrative that the current hiring trend across the technology ecosystem is slowing down, FalconX’s growth strategy remains unchanged. The company is currently hiring across departments. As one of the leading talent hubs in the world of crypto, the company recently announced the hiring of key executives like Suzy Walther (formerly of Carta) and Jon Kaplan (formerly of Pinterest). Because the crypto industry is well funded with more capital eager to engage, premier talent is hungry to be involved in these early stages.
“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,” said Rashmi Gopinath, General Partner, B Capital.
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.