FalconX Expands with Arbelos Markets Acquisition Talks Underway

• FalconX plans to acquire Arbelos Markets, a derivatives startup, to enhance its crypto trading and liquidity offerings.
• Arbelos Markets raised $28 million to expand its infrastructure and rebuild trust in crypto derivatives markets.

FalconX, a well-known crypto trading and brokerage platform, is reportedly in advanced talks to purchase Arbelos Markets, a derivatives-focused startup founded in 2023 by seasoned cryptocurrency veterans Joshua Lim and Shiliang Tang, according to Bloomberg. Anticipated to be disclosed soon, this transaction is likely to be funded with a mix of cash and FalconX stock.

In its brief existence, Arbelos Markets has become somewhat well-known as a main source of liquidity for crypto derivatives. The company specializes in delivering liquidity across options and futures products together with transparent trading infrastructure.

Arbelos created its own Transparency Engine to help build confidence in the volatile crypto markets. Setting a standard for responsibility and operational clarity in the industry, this technology provides a real-time view into its risk profile, balance sheet, and counterparty exposures.

Arbelos Secures Funding and Becomes a Strategic Target for FalconX 

Arbelos closed $28 million in a funding round headed by Dragonfly Capital in May 2024 with involvement from big sector players including FalconX itself, Circle Ventures, Paxos, and Deribit. The money raised went into improving Arbelos’s trade facilities, growing its staff, and increasing its product line.

These initiatives have positioned the company as a desirable acquisition candidate, especially for FalconX, which wants to expand its derivatives products to satisfy growing market needs.

The acquisition will help FalconX provide a more complete portfolio of trading solutions by strengthening its infrastructure and extending its service capability. This coordination of resources and knowledge will probably help FalconX serve institutional customers and support its leadership in the space of digital asset trading.

FalconX’s strategic acquisition of Arbelos shows its commitment to remain ahead in this competitive environment since the growth of the crypto company depends on the derivatives market.

On the other hand, CNF previously noted another significant change in the crypto space: MoonPay’s intentions to buy Helio, its biggest purchase to date, to support its crypto payment systems. Furthermore, Venmo’s cooperation with MoonPay now lets 60 million Americans immediately buy crypto with their Venmo accounts.