FalconX Acquires Arbelos to Expand Crypto Derivatives Business

Digital asset prime broker FalconX acquired Arbelos Markets to expand its derivatives business and strengthen its position among cryptocurrency derivatives dealers.

Arbelos Markets is a trading firm that specializes in crypto derivatives, while FalconX operates FalconX Bravo, a swap dealer that is focused on crypto derivatives and approved by the Commodities Futures Trading Commission, the companies said in a Thursday (Jan. 2) press release.

“Combining Arbelos’s systematic trading expertise with FalconX’s broad client base, large balance sheet and regulatory leadership, we’re uniquely positioned to address the growing demand for complex trading strategies and bespoke products,” FalconX CEO Raghu Yarlagadda said in the release. “Together, we hope to set a new standard for transparency, scale and innovation in digital asset markets.”

The acquisition of Arbelos will enhance FalconX’s ability to offer access to deeper liquidity, bespoke derivatives solutions and a broader range of trading strategies, according to the release.

Arbelos Markets has a cross-market capability that provides access to liquid trading opportunities across crypto-native venues, traditional venues and on-chain protocols, the release said.

The acquisition comes at a time when positive regulatory momentum and the growth of exchange-traded funds (ETFs) and derivatives markets have driven growth in the institutional market, per the release.

“Joining forces with FalconX achieves our shared mission of offering deep market liquidity, creative risk-expression strategies and hedging tools, and transparency to the crypto derivative markets,” Arbelos Markets CEO Joshua Lim said in the release.

Investors, experts and industry executives expect the world’s most popular crypto — bitcoin — to reach new record highs in 2025, CNBC reported Tuesday (Dec. 31).

Elitsa Taskova, chief product officer at crypto lending platform Nexo, told CNBC that the trends driving this expected growth include “increasing recognition of bitcoin as a reserve asset, more bitcoin and crypto-related exchange-traded products (ETPs) and stronger adoption.”

FalconX said in December that it completed an integration with Bittensor (TAO) to provide institutional investors and ecosystem participants with solutions for asset storage and earning staking rewards.

“Coupled with our full suite of prime services across trading, credit and holistic treasury management solutions, we support the growth of innovative protocols in every step of their journey,” Ben Dapkiewicz, general manager of custody at FalconX, said in a Dec. 18 press release.