FalconX, a digital asset platform and crypto brokerage for institutional investors, today announced it has raised $150 million in a late-stage funding round, more than doubling its valuation to $8 billion.
Investors GIC and B Capital co-led the Series D funding round, which brings the total raised by the company to more than $430 million. Thoma Bravo, Wellington Management, Adams Street Partners and Tiger Global Management also participated in the round.
The company provides what are called prime brokerage services to institutional partners allowing them to access and manage their crypto assets with services that simplify trading, credit and clearing across multiple markets at once with seamless execution.
Recent market downturns and volatility for crypto assets have seen bitcoin, the largest cryptocurrency by market cap, fall to its lowest value since November 2020 during June amid increasing volatility. Other cryptocurrencies such as Ether, the second-largest cryptocurrency, tumbled as much as 19%, to $881, before recovering 11% earlier in the week.
However, Chief Executive Raghu Yarlagadda isn’t concerned about this volatility affecting the bottom line for FalconX because the objective of the platform is to support customers in providing for their trade strategies amid any given market conditions.
“FalconX is one of the very few crypto prime brokerages that do not take on market risk, so we’re not in conflict with our clients and their trading strategies,” said Yarlagadda. “In light of recent market conditions, this is extremely valuable to our clients who demand a reliable market infrastructure provider.”
Yarlagadda added that the industry is still in the early stages of transformation and thus is still in its first stages of use cases in the markets. Right now, FalconX wants to be in a position to capitalize on that transformation and take advantage of institutional customers trading in those markets.
Those customers include everyone from the world’s largest hedge funds to financial technology companies. FalconX seeks to drive that transformation by creating the infrastructure that will allow them to access their crypto assets but also tokenize traditional equities as well.
“This investment is a validation of our client-first focus, the health and strength of the crypto industry, and the move toward digital asset transformation,” added Yarlagadda.
Although much of the crypto industry is currently downsizing because of volatility and falling markets, the company said it’s hiring and growth strategy remains unchanged. Crypto exchange Coinbase reduced its staff by 18% amid the recent downturn, following layoff announcements from BlockFi and Crypto.com. FalconX is continuing to hire across all departments and is building its executive team.
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