FalconX, a leading digital asset brokerage, has acquired Arbelos Markets, a crypto derivatives platform, in one of the first major cryptocurrency acquisition deals of 2025. The deal, confirmed by FalconX co-founder and CEO Raghu Yarlagadda on January 2, positions the firm to enhance its services for institutional clients.
Deal Details and Strategic Importance
While the financial terms of the acquisition were not disclosed, Bloomberg reported on December 31 that the deal involved a combination of FalconX stock and cash.
Yarlagadda emphasized that this acquisition would enable FalconX to create greater value for institutional clients by integrating Arbelos’ advanced trading platform with FalconX’s strong balance sheet and regulatory compliance framework.
“This isn’t just about scaling FalconX—it’s about building the foundation for the next phase of crypto market growth. A healthy, transparent derivatives market is key to long-term institutional confidence,” Yarlagadda stated.
Strengthening the Crypto Derivatives Market
The crypto derivatives market has been gaining traction, especially after the introduction of U.S. spot crypto exchange-traded funds in 2024. Many institutional investors have turned to derivatives for their capital efficiency, continuous trading availability, and enhanced liquidity.
Yarlagadda believes that a transparent and well-regulated derivatives market will bolster institutional trust, paving the way for sustained growth in the crypto sector.
About FalconX and Arbelos Markets
Founded in 2018, FalconX is a prominent crypto prime brokerage, handling over $1.5 trillion in trading volume across more than 400 tokens for 600 institutional clients. The firm has offices in key global hubs, including Silicon Valley, New York, London, Singapore, and Hong Kong.
FalconX survived significant industry turmoil, including the FTX collapse in 2022, which impacted 18% of its liquid cash equivalents.
Arbelos Markets, launched in 2023 by Joshua Lim and Shiliang Tang, has quickly established itself as a leader in crypto derivatives. Lim previously managed trading desks at Galaxy Digital and Genesis Global Trading, while Tang served as chief investment officer at LedgerPrime, now MNNC Group.
Regulatory Challenges and FalconX’s Resilience
FalconX faced regulatory scrutiny in May 2024, paying $1.8 million in penalties for failing to register as a futures commission merchant. The settlement barred the firm from offering services to U.S. residents, highlighting the challenges of navigating crypto regulation globally.
The acquisition of Arbelos Markets underscores FalconX’s commitment to expanding its capabilities and fostering a healthier, more transparent crypto derivatives market. This move positions FalconX as a key player in shaping the next phase of institutional adoption in the digital asset space.
