FalconX is in talks to acquire Arbelos Markets, a crypto derivatives startup. Despite previous setbacks in recent years, FalconX recently posted a record quarter and plans to make major acquisitions.
The CEO predicted a “consolidation wave” in 2025, and Arbelos’ position in the growing derivatives market makes it an attractive target.
FalconX to acquire Arbelos
FalconX, a long-standing platform for trading and brokerage of digital assets, is looking to purchase Arbelos Markets. The company’s peak came in 2021, securing significant funding and quintupling its value in five months. Since then, FalconX has seen major setbacks, with 18% of total funds stuck on a failed exchange and new CFTC fines this year.
However, according to Bloomberga rebound is taking place. In October 2024, FalconX reported a record quarter and the company began looking for acquisitions. Co-founder and CEO Raghu Yarlagadda presents an optimistic outlook for 2025.
“The cost of doing business in crypto will increase as more institutional players enter the market and regulations tighten. This will in turn trigger a wave of consolidation in 2025. Currently, we are actively exploring potential acquisitions and evaluating the relevant sectors and the key players within them,” asserted Yarlagadda.
After two months of research, FalconX has apparently identified its next acquisition target: Arbelos Markets, a crypto derivatives startup. According to anonymous sources, the transaction will take place in the coming days and FalconX will pay in cash and shares of the company. Arbelos, for its part, is extremely connected to critical market trends.
Derivatives markets have grown in importance in the crypto market over the past few months. Several major players, like on-chain analytics firm Arkham Intelligence, have recently made a major shift in this space. By acquiring Arbelos, FalconX could also capitalize on this trend. However, only time will tell if cryptocurrency mergers and acquisitions will increase in 2025.
Over the past few years, FalconX has seen significant growth due to the increasing demand for digital asset brokerage services.
In April 2022, FalconX became the first cryptocurrency swaps broker registered with the CFTC, improving its regulatory status and providing clients with secure access to over-the-counter crypto derivatives markets.
The company has attracted substantial investment, raising a total of $430 million across multiple funding rounds from investors including GIC, B Capital and Tiger Global Management.
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