In the midst of FalconX's listing, will the first crypto brokerage replicate Circle or Coinbase?

Author: Dingdang, Odaily Planet Daily

On June 5, 2025, stablecoin giant Circle was officially listed on the New York Stock Exchange with an issue price of US$31 per share, significantly higher than the early estimate of the US$24 to US$26 range. What is even more remarkable is that as of now, the after-hours price of CRCL has once climbed to US$214, with a market value exceeding US$48 billion. In just over ten days, the cumulative increase is close to 600%. At the same time, a new batch of crypto concept stocks such as SBET and SRM have also performed strongly. (Refer to: "The Bull Market of Crypto, All in the US Stocks: Ten Days from Circle to 165 USD")

Against the backdrop of the continuous improvement of the US regulatory environment and the accelerated entry of institutional funds, the trend of crypto companies "going to Wall Street" is accelerating. According to the main business positioning, exchanges, stablecoins and mining are already represented, and the main crypto broker FalconX is revealed to be preparing for the listing plan within the year. This company, which is worth US$8 billion and serves institutional investors around the world, is trying to seize the time window of this "institutionalization wave" and seize the initiative in the capital market.

Starting from Silicon Valley, how does FalconX take the main brokerage

route to encrypt?

Born in Silicon Valley in 2018, FalconX is a place that specializes in turning technological narratives into capital myths. Co-founder Prabhakar Reddy has a deep background in cross-border financial infrastructure. OpenFX, which he founded in the early days, focused on foreign exchange market technical services and laid a solid foundation for FalconX.

Unlike crypto exchanges for retail investors, FalconX has targeted institutional clients since its inception, clearly positioned as a "prime broker" (Prime Broker), focusing on providing full-service to professional investors, and its business covers three core sectors:

• Aggregate liquidity and intelligent order routing on multiple exchanges to achieve efficient matching and cost optimization;
• Provide structured financing and crypto asset mortgage loan services to meet the flexible financing needs of institutions;
• Expand asset management and derivatives strategy products and create a complete solution for institutional investment portfolios.

As of 2025, FalconX has set up global offices in seven places including New York, London, Singapore, Silicon Valley, Bangalore, Valletta, etc., basically completing the initial construction of the organizational service network.

FalconX's team integrates the dual genes of traditional finance and technology. The core members come from top companies such as JPMorgan Chase, Citi, PayPal, Kraken, Affirm and Microsoft, and combines rigorous risk control capabilities and excellent technical execution.

In 2022, the company completed a US$150 million financing and its valuation jumped to US$8 billion. The investors behind it include well-known institutional capitals such as GIC, Tiger Global, Accel, and Lightspeed, adding weight to the brand image favored by its institutions.

Accelerate M&A expansion, FalconX's 2025

Entering 2025, FalconX has significantly accelerated its business expansion, focusing on the three major sectors of derivatives market, institutional financing and asset management, with its strategic intentions becoming increasingly clear:

In January 2025, the acquisition of derivatives startup Arbelos Markets further strengthened its capabilities in structural product design and risk hedging;

In March 2025, in partnership with StoneX, it launched Solana futures products on the Chicago Mercantile Exchange (CME) and completed its first block transaction, while becoming the main liquidity provider for CME crypto derivatives;

In May 2025, it cooperated with Cantor Fitzgerald to complete the first Bitcoin-backed financing transaction and plans to provide institutional clients with a financing amount of up to US$2 billion. During the same period, it established a strategic partnership with global bank Standard Chartered, and further opened up the channels between traditional financial and crypto markets with its banking and foreign exchange service capabilities;

In June 2025, it acquired a majority stake in asset management company Monarq Asset Management (formerly LedgerPrime, originally belonging to the FTX ecosystem), expanding FalconX's product capabilities and customer reach in the fields of asset management and quantitative trading.

Through a series of mergers and acquisitions, product launches and strategic cooperation, FalconX is gradually transforming from a "broker" role in a single transaction matchmaking to a platform-based financial service provider covering multiple assets and multiple service modules. These initiatives not only enrich their business matrix, but also build a more persuasive capital narrative for the preparations for the upcoming IPO.

Why is it listed at this time? Capital logic and rhythm control behind

IPO

Sources revealed that FalconX has entered into informal contacts with investment bank advisers to evaluate the feasibility of the IPO and may submit a listing application within the year.

Choosing to start the listing preparations at this moment is not a hasty move. There has been a series of landmark events in the crypto industry over the past few months.

Circle successfully landed on the New York Stock Exchange, and its market value soared to US$48 billion in more than ten days of listing, far exceeding market expectations. This feat greatly boosted investor confidence and quickly changed the risk pricing logic of the capital market for crypto companies; leading platforms such as Kraken, Gemini, and Bullish have also reported IPO preparation plans, and the capital window is gradually opening.

Meanwhile, there have been subtle changes in the regulatory environment. The new US government has sent more friendly signals, and the SEC's attitude has become milder, providing more clear space for crypto companies to expect. The demand structure of institutional customers is also quietly changing, from single transactions to structured financing, derivatives management and comprehensive risk allocation, and the status of the main broker is becoming increasingly prominent.

With all the signals intertwined, FalconX seemed to have found its time. Not as a follower, but trying to be a pioneer in this institutionalization cycle. For FalconX, an IPO is not only a financing opportunity, but also a key node for brand reshaping and strategic leap: from a "high-growth startup" to a "global crypto financial infrastructure provider", the recognition of the open market will become an important endorsement of its credibility.

Of course, although the window is open, it won't last long. The emotional dividends ignited by Circle are still continuing, and the pace of the capital market has always changed rapidly. If FalconX cannot enter the market smoothly during this cycle, the next window opening may require several years or even a complete market cycle.

As of now, FalconX has not officially hired investment banks to underwrite, which is the regular first step in starting the listing process, which means that the IPO is still in the early stages of preparation and there are still many uncertainties.

Potential concerns: organizational adjustments and executive resignation

wave

It is worth noting that while FalconX is expanding rapidly, it also faces organizational management challenges.

In March 2025, the company was exposed to intensive resignation of senior executives, including the head of the European region, credit supervisor, general counsel and chief compliance officer, more than ten employees left one after another. It is rumored that the personnel fluctuations involved layoffs and voluntary resignation, and the company did not respond publicly.

In rapidly growing companies, personnel adjustments are not uncommon. However, for a company that is seeking an IPO, the stability of the governance structure and the continuity of the executive team are often regarded by investors as important indicators of the company's maturity and risk management capabilities.

This also reminds the market: the test of IPO is not only about revenue growth and customer expansion, but also about whether the company can demonstrate stable and sustainable "full stack capabilities" in multiple dimensions such as capital, organization, personnel and compliance.

Summary: Wall Street opens its doors, the second half of the

cryptocurrency broker

Whether FalconX can successfully ring the Nasdaq bell remains to be released. But it is certain that a series of strategic moves have clearly outlined the future:

After Circle opened the confidence window for encrypted IPOs, FalconX is trying to enter the public eye as the "next move to the wave of encryption institutionalization." Its role is not only a valuation story of a certain company, but also a symbolic turning point in the entire crypto industry from the edge to the mainstream.

Can it copy the capital miracle of Circle? Can we avoid the valuation highs encountered by Coinbase in 2021 resonate with the decline in currency prices? The answers to these questions may gradually emerge in their upcoming prospectus.

But what is certain is that in this new cycle of capital, trust and institutional coordination, FalconX is no longer a bystander.