FalconX, a digital asset prime broker, announced its acquisition of Arbelos Markets, a trading firm specializing in crypto derivatives led by industry professionals Joshua Lim, Shiliang Tang, and Sergio Almada Monter.
FalconX reportedly operates FalconX Bravo Inc., the CFTC approved swap dealer focused on crypto derivatives, and this acquisition reinforces the firm’s commitment to “expanding its derivatives business and strengthens its position as one of the largest crypto derivatives dealers in the market.”
The institutional market has seen growth in the last year, driven by positive regulatory momentum along with the “growth of ETF and derivatives markets.”
Similar to traditional asset classes, crypto derivatives will continue “to scale to be many multiples of spot markets.”
FalconX has built a position in the derivatives market, “ranking as one of the top liquidity providers on Deribit.”
This acquisition will enhance FalconX’s capabilities to provide customers with access to liquidity and derivatives solutions, “supporting institutions with a more sophisticated and diversified range of trading strategies.”
Raghu Yarlagadda, CEO of FalconX said:
“With over 60% of global derivatives trading activity happening OTC in traditional markets, this acquisition solidifies FalconX’s position as the go-to platform for derivatives liquidity. Combining Arbelos’s systematic trading expertise with FalconX’s broad client base, large balance sheet, and regulatory leadership, we’re uniquely positioned to address the growing demand for complex trading strategies and bespoke products. Together, we hope to set a new standard for transparency, scale, and innovation in digital asset markets.”
Arbelos Markets has established itself as a derivatives trading firm “across exchanges and bilateral markets.”
The firm enables access to liquid trading opportunities “across crypto-native and traditional venues as well as on-chain protocols.”
This cross-market capability has reportedly made Arbelos “a trusted partner for counterparties exploring emerging digital asset opportunities.”
Joshua Lim, CEO of Arbelos Markets said:
“Joining forces with FalconX achieves our shared mission of offering deep market liquidity, creative risk-expression strategies and hedging tools, and transparency to the crypto derivative markets. This combination comes at a critical moment for our industry, with the advent of crypto ETFs, pending regulatory clarity, and an increasing acceptance of crypto’s diversifying role in cross-asset portfolios.”
FalconX is a digital assets prime brokerage providing trading, financing, and technology to institutions.
FalconX Bravo, Inc., a FalconX affiliate, was the first CFTC-registered swap dealer “focused on cryptocurrency derivatives.”
They provide the access to global digital asset liquidity.
Their 24/7 dedicated team for account, “operational and trading needs enables investors to navigate markets around the clock.”
The company is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, others.
Arbelos Markets is a “principal liquidity provider” in crypto derivatives markets.
The firm provides around-the-clock liquidity across “centralized markets, on-chain protocols, and more bespoke hedging and yield generation solutions.”
Its team of traders and quantitative engineers has experience across “high-touch franchise trading, bespoke products, and electronic market-making.”
Arbelos is backed by crypto investment firms including the following entities: Dragonfly, Room40 and Selini, and strategic corporate partners including Circle, Paxos, FalconX, Deribit, Chorus One, Polygon, StarkWare, Immutable.