FalconX Acquires Arbelos Markets, Expands Into Derivatives

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 is looking to carry out major acquisitions.

The CEO predicted a “wave of consolidation” 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 digital asset trading and brokerage, is looking to purchase Arbelos Markets. The firm’s heyday was in 2021, securing major funding and quintupling its value in five months. Since then, FalconX experienced major setbacks, with 18% of total funds locked on a failed exchange and fresh CFTC fines this year.

However, according to Bloomberg, a rebound is taking place. In October 2024, FalconX posted a record quarter, and the company began looking for acquisitions. Co-founder and CEO Raghu Yarlagadda cast an optimistic outlook for 2025.

“The cost of doing business in crypto will rise as more institutional players enter the market and regulations tighten. That in turn will trigger a wave of consolidation in 2025. Currently, we are actively exploring potential acquisitions and assessing the relevant sectors and key players within them,” Yarlagadda claimed.

After two months of searching, FalconX has apparently identified its next acquisition target: Arbelos Markets, a crypto derivatives startup. According to anonymous sources, the deal will take place in the next few days, and FalconX will pay using cash and company shares. Arbelos, for its part, is acutely plugged into critical market trends.

Derivatives markets have risen in prominence in the crypto market over the last few months. Several important players, like on-chain analysis firm Arkham Intelligence, have conducted a major pivot into this space recently. By acquiring Arbelos, FalconX may also capitalize on this trend. Only time will tell, however, if crypto mergers and acquisitions increase in 2025.

Over the past few years, FalconX saw significant growth due to increasing demand for digital assets brokerage services.

In April 2022, FalconX became the first cryptocurrency swap dealer registered with the CFTC, enhancing its regulatory standing 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 over multiple funding rounds from investors including GIC, B Capital, and Tiger Global Management.