FalconX, a Silicon Valley-based cryptocurrency brokerage and digital asset trading platform that uses data science to provide institutions with trading, credit, and clearing, announced it has secured a $50 million investment to scale its team and further expand its business lines to support new market growth.
The round was led by Tiger Global and B Capital Group, with participation from existing investors including Accel, Accomplice VC, American Express Ventures. Coinbase Ventures, CMT Digital, Flybridge Capital Partners, Lightspeed Venture Partners, and Avon Ventures, a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments.
FalconX was founded in 2018 by Raghu Yarlagadda and Prabhakar Reddy. Raghu is an engineer and an entrepreneur. Prior to co-founding FalconX, he worked at Google, where he was instrumental in scaling Chromebooks to $3 billion in revenue for Google and its partners. Prabhakar, an engineer, and a serial entrepreneur exited his last venture to an Accel Partners portfolio company, prior to joining Accel as an investor.
FalconX is an all-in-one digital asset platform facilitating trading, credit, and clearing for institutions. Since its inception, FalconX has generated over $7 billion in global trading volume at a quarterly growth rate of over 600%. Clients include over 100 financial institutions across traditional finance including hedge funds,
Over the last year, the profitable FalconX has grown its net revenue 46X, driven by increased demand for cryptocurrencies from institutional investors seeking an inflationary hedge in an unprecedented macroeconomic environment.
The startup has also seen exponential growth from traditional allocators who turn to the platform for a white glove experience through the entire trade lifecycle – growth client segments including Fortune 1000 corporate treasuries, family offices, registered investment advisors, and other traditional enterprises.
“FalconX is at the center of cryptocurrency’s institutional growth, providing a one-stop-shop for cryptocurrency trading, credit, and clearing. We believe FalconX is positioned to be an industry leader in the institutional cryptocurrency market with many years of sustainable and profitable growth ahead,” said Scott Shleifer, Partner, Tiger Global.
FalconX provides a single platform for institutions accessing the cryptocurrency market. In a market plagued by poor customer service and unreliable infrastructure, FalconX provides sophisticated institutions robust transactional infrastructure with 99.999% uptime and 24/7/365 coverage. Institutions frequently turn to FalconX for its ability to execute large orders with discretion and limited price impact, without exposing orders on exchange order books and causing information leakage.
FalconX enables qualified clients to earn yield and trade on margin through its credit product, which saw volumes increase to over $3 billion in Q4 2020. Through a suite of financial products, institutional investors can leverage flexible settlement terms coupled with deep liquidity across major cryptocurrencies today.
“This is a defining moment for the industry, with Coinbase’s public offering, and institutional adoption increasing exponentially. We believe all institutional investors and corporate treasuries will hold digital assets in the next 5 years – whether that’s Bitcoin, digital dollars, or tokenized real-world assets. FalconX is building the infrastructure to support these multi-trillion-dollar asset classes,” said Raghu Yarlagadda, FalconX CEO and co-founder. “We’re excited to partner with Tiger Global and B Capital Group to unlock this growth.”