FalconX Acquires Majority Stake in Monarq Asset Management to Expand Institutional Services

Strategic Acquisition Strengthens FalconX’s Position in Institutional Crypto Market

Cryptocurrency prime brokerage leader FalconX has successfully acquired a majority stake in Monarq Asset Management’s parent company, marking another significant expansion move in the institutional digital asset space. The acquisition, reported by Bloomberg on June 2, 2025, represents FalconX’s continued strategy to broaden its asset management capabilities and expand its institutional client portfolio.

About Monarq Asset Management: From FTX Legacy to New Ownership

Monarq Asset Management, a Cayman Islands-registered investment fund, carries a complex history tied to the collapsed FTX exchange. The fund operates under the current name after previously being known as MNNC Group. Before that transformation, the hedge fund operated as LedgerPrime and was part of the extensive FTX empire before the exchange’s dramatic collapse in late 2022.

The transition from LedgerPrime to MNNC Group, and eventually to Monarq Asset Management, represents the fund’s efforts to rebuild and establish independence from its troubled past. While the specific financial terms of FalconX’s acquisition remain undisclosed, the strategic value appears centered on expanding institutional reach and capabilities.

FalconX’s Growth Strategy Through Strategic Acquisitions

This Monarq acquisition represents the latest in a series of strategic moves by FalconX to consolidate its position in the institutional cryptocurrency market. The company’s expansion timeline includes several notable developments:

January 2025: FalconX acquired derivatives startup Arbelos Markets, enhancing its trading infrastructure and derivative capabilities.

May 2025: The company announced a significant partnership with Standard Chartered Bank to scale institutional crypto banking services, providing traditional financial institutions with enhanced cryptocurrency access.

These acquisitions and partnerships demonstrate FalconX’s systematic approach to building a comprehensive institutional cryptocurrency ecosystem.

Expected Benefits and Strategic Implications

FalconX views the Monarq acquisition as a gateway to expanding beyond its traditional client base of hedge funds and asset managers. The integration is expected to deliver several key advantages:

Enhanced Quantitative Capabilities: Access to Monarq’s quantitative trading models and strategies will strengthen FalconX’s analytical capabilities and trading performance.

Expanded Client Base: The acquisition provides entry points to new institutional relationships and potential clients previously outside FalconX’s direct reach.

Team Growth: Integration with Monarq’s experienced team members will bolster FalconX’s human capital and expertise in specialized areas of crypto asset management.

Diversified Service Offerings: The combined entity can offer more comprehensive asset management solutions to institutional clients seeking sophisticated cryptocurrency investment strategies.

FalconX Company Profile and Market Position

Founded in 2018, FalconX has established itself as a dominant force in digital asset prime brokerage. The company claims to be the world’s largest digital asset prime brokerage, with impressive operational metrics that underscore its market leadership:

• Trading Volume: Over $1.5 trillion in executed trading volume
• Market Access: Connectivity to 94% of global digital asset liquidity
• Valuation: $8 billion valuation achieved during Series D funding round in June 2022
• Funding: Successfully raised $150 million in Series D financing

Regulatory Challenges and Compliance

Despite its market success, FalconX has faced regulatory scrutiny. In May 2024, the company reached a settlement with the US Commodity Futures Trading Commission (CFTC), agreeing to pay $1.8 million in penalties and disgorgement for allegedly failing to register with the regulatory agency.

As part of the settlement agreement, FalconX committed to discontinuing services to US residents, focusing its operations on international markets where regulatory frameworks may be more accommodating to cryptocurrency businesses.

Surviving Market Turbulence

FalconX demonstrated resilience during the cryptocurrency market’s most challenging period following the FTX collapse in late 2022. The company disclosed that FTX held approximately 18% of its unencumbered cash equivalents, but the firm successfully navigated the crisis without significant operational disruption.

This survival and continued growth through one of crypto’s most turbulent periods has positioned FalconX as a stable and reliable partner for institutional clients seeking exposure to digital assets.

Industry Impact and Future Outlook

The acquisition of Monarq Asset Management by FalconX reflects broader consolidation trends in the cryptocurrency industry. As the market matures, established players are acquiring specialized capabilities and expanding their service offerings to meet evolving institutional demands.

This trend toward consolidation and specialization suggests that the cryptocurrency industry is moving toward a more traditional financial services model, where comprehensive service providers dominate market segments through strategic acquisitions and partnerships.

Conclusion

FalconX’s acquisition of Monarq Asset Management represents a calculated expansion strategy designed to strengthen its institutional cryptocurrency services. By integrating Monarq’s quantitative expertise and client relationships, FalconX positions itself to capture a larger share of the growing institutional cryptocurrency market.

The deal exemplifies how leading cryptocurrency firms are building comprehensive service ecosystems through strategic acquisitions, partnerships, and organic growth. As institutional adoption of digital assets continues expanding, such consolidation moves are likely to become increasingly common as companies seek competitive advantages in an evolving market landscape.