Digital asset trading and brokerage firm FalconX is in advanced negotiations to acquire Arbelos Markets, a derivatives startup founded by two industry veterans in 2023.
FalconX aims to acquire the cryptocurrency derivatives platform Arbelos.
According to Bloomberg, FalconX is in advanced negotiations to acquire Arbelos Markets, with the deal expected to be financed through a mix of cash and FalconX stock, and is anticipated to be announced in the coming days.
Founded in 2018, FalconX is a company specializing in providing cryptocurrency trading and investment solutions for institutions. It allows users to buy and sell digital assets through a secure network and utilizes blockchain technology and machine learning to execute services for hedge funds, proprietary trading firms, and more. FalconX raised $150 million in 2022, with a valuation of $8 billion at that time.
Arbelos Markets is a cryptocurrency trading platform development company established in 2023, focusing on providing liquidity in the cryptocurrency derivatives market. Founders Joshua Lim and Shiliang Tang are former bankers turned cryptocurrency traders.
Arbelos announced a funding of $28 million in May 2024, led by Dragonfly Capital, with investors including well-known firms such as FalconX, Circle, Paxos, Immutable, and Deribit.
Cryptocurrency M&A transactions will surge in 2025.
FalconX co-founder and CEO Raghu Yarlagadda stated in October that he expects a "wave of consolidation" in the industry and indicated that the company would actively seek acquisition targets.
According to data from The Block, cryptocurrency M&A activity increased from 221 transactions in 2023 to 248 transactions in 2024.
Galaxy Ventures predicts that cryptocurrency M&A activity will surge in 2025, driven by the return of fintech companies, banks, and tech firms to the cryptocurrency space. With increased regulatory transparency in the U.S., IPO activity will resume, creating more opportunities for cryptocurrency companies to enter the public market.
This article states that 2025 will be the year of cryptocurrency M&A! FalconX is negotiating to acquire Arbelos, first appearing in Chain News ABMedia.