FalconX Expands Derivatives Footprint with Arbelos Markets Acquisition

FalconX, a leading digital asset prime broker, has announced its acquisition of Arbelos Markets, a trading firm specializing in crypto derivatives. This strategic move further solidifies FalconX's commitment to expanding its derivatives business and strengthens its position as one of the largest crypto derivatives dealers in the market.

The institutional market has witnessed significant growth in the last year, driven by positive regulatory momentum and the growth of ETF and derivatives markets. Similar to traditional asset classes, crypto derivatives are expected to scale to be many multiples of spot markets. FalconX has built a leading position in the derivatives market, consistently ranking as one of the top liquidity providers on Deribit. This acquisition will further enhance FalconX's capabilities to provide customers with access to deeper liquidity and bespoke derivatives solutions, supporting institutions with a more sophisticated and diversified range of trading strategies.

"With over 60% of global derivatives trading activity happening OTC in traditional markets, this acquisition solidifies FalconX's position as the go-to platform for derivatives liquidity," said Raghu Yarlagadda, CEO of FalconX. "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. Together, we hope to set a new standard for transparency, scale, and innovation in digital asset markets."

Arbelos Markets has established itself as a leading derivatives trading firm across exchanges and bilateral markets. Since its inception in 2023, it has consistently ranked as the number 1 liquidity provider globally in large options blocks. The firm enables access to liquid trading opportunities across crypto-native and traditional venues as well as on-chain protocols. This cross-market capability has made Arbelos a trusted partner for many counterparties exploring emerging digital asset opportunities.

"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," said Joshua Lim, CEO of Arbelos Markets. "This combination comes at a critical moment for our industry, with the advent of crypto ETFs, pending regulatory clarity, and an increasing acceptance of crypto's diversifying role in cross-asset portfolios."

FalconX operates FalconX Bravo Inc., the first CFTC-approved swap dealer focused on cryptocurrency derivatives, and this acquisition further reinforces the firm's commitment to expanding its derivatives business. The company is backed by investors including Accel, Adams Street Partners, Altimeter Capital, American Express Ventures, B Capital, GIC, Lightspeed Venture Partners, Sapphire Ventures, Thoma Bravo, Tiger Global Management, and Wellington Management. FalconX has offices in Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta.

Arbelos Markets is a principal liquidity provider in crypto derivatives markets, offering around-the-clock liquidity across centralized markets, on-chain protocols, and more bespoke hedging and yield generation solutions. Its team of traders and quantitative engineers has experience across high-touch franchise trading, bespoke products, and electronic market-making. Arbelos is backed by leading crypto investment firms including Dragonfly, Room40, and Selini, and strategic corporate partners including Circle, Paxos, FalconX, Deribit, Chorus One, Polygon, StarkWare, and Immutable.




In conclusion, the acquisition of Arbelos Markets by FalconX is a strategic move that will enhance the company's derivatives liquidity and bespoke product offerings, further solidifying its position as a leading digital asset prime broker. This combination of expertise and resources will enable FalconX to better serve its institutional clients and set a new standard for transparency, scale, and innovation in digital asset markets.