In 2025, FalconX expanded its footprint further by acquiring the derivatives startup Arbelos Markets and entering into a strategic partnership with Standard Chartered.
FalconX, a leading crypto prime broker, has reportedly taken over a majority stake in the parent company of Monarq Asset Management, which was formerly under the ownership of the now-bankrupt exchange FTX.
Bloomberg reported on June 2 that the company aims to grow its institutional client network and expand the range of its asset management offerings through this move.
Monarq Asset Management, formerly known as MNNC Group, operates as a hedge fund registered in the Cayman Islands. Before rebranding as MNNC, the firm conducted business under the name LedgerPrime and maintained an affiliation with the FTX group prior to the exchange’s collapse. FalconX and Monarq’s parent company have not disclosed the specific terms of their acquisition deal.
Established in 2018, FalconX has been actively working to broaden its presence in recent months. In January, the firm acquired the derivatives startup Arbelos Markets. By May, it had also revealed a strategic collaboration with Standard Chartered aimed at advancing institutional crypto banking services.
FalconX is said to view its investment in Monarq as a strategic opportunity to broaden its institutional reach beyond hedge funds, financial firms, and asset management companies. The move may also support the scaling of quantitative strategies and contribute to the expansion of the company’s workforce.
FalconX Reaches Settlement with CFTC Over Registration Violations
FalconX claims the title of the largest digital asset prime brokerage globally, having executed more than $1.5 trillion in trading volume and offering access to 94% of global digital asset liquidity. In May 2024, the firm reached a $1.8 million settlement with the U.S. Commodity Futures Trading Commission (CFTC), which included penalties and disgorgement related to allegations of operating without proper registration.
Under the terms of the settlement, FalconX agreed to discontinue providing its services to residents of the United States.
In June 2022, the brokerage secured $150 million during its Series D funding round, reaching a valuation of $8 billion. It later weathered the fallout from the FTX collapse. The firm stated that FTX had custody of 18% of its unencumbered cash equivalents at the time.
