FalconX acquires Arbelos Markets to strengthen crypto derivatives

Digital asset brokerage FalconX has acquired the crypto derivatives platform Arbelos Markets, marking one of the first significant crypto acquisition deals of 2025.

The acquisition was confirmed by FalconX’s CEO Raghu Yarlagadda in a January 2 post, following a Bloomberg report.

While the financial terms of the deal were not disclosed, sources indicated that the transaction is likely financed through a combination of FalconX stock and cash.

Yarlagadda emphasised that the acquisition positions FalconX to better serve its institutional clients.

By combining Arbelos' trading platform with FalconX's balance sheet and regulatory readiness, the company aims to enhance its value offering.

The CEO further explained that the move is not just about scaling FalconX, but also about laying the groundwork for the next phase of crypto market growth.

“A healthy, transparent derivatives market is key to long-term institutional confidence,” he noted.

FalconX, founded in 2018, claims to be the world's largest crypto prime brokerage, having executed more than $1.5 trillion worth of trading volume from over 400 tokens for more than 600 institutions.

Arbelos Markets, launched in 2023, was founded by Joshua Lim and Shiliang Tang, both of whom have backgrounds in traditional finance.

Lim previously led trading desks at Galaxy Digital and Genesis Global Trading, while Tang served as the CIO at LedgerPrime (now operating as MNNC Group).

FalconX's acquisition comes after the company faced regulatory challenges.

In May 2024, the firm paid $1.8 million in penalties to the U.S. commodities regulator for failing to register as a futures commission merchant.

The settlement included a provision to stop offering services to U.S. residents.

The brokerage firm has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta.