FalconX is in talks to acquire crypto derivatives startup Arbelos, with an announcement expected in the coming days

PANews reported on January 1 that according to Bloomberg, digital asset trading and brokerage company FalconX is in advanced negotiations to acquire Arbelos Markets, a derivatives startup founded in 2023 by two crypto industry veterans. The deal, which will be financed through a combination of cash and FalconX stock, is expected to be announced in the coming days, according to people familiar with the matter. It's unclear how much the deal values ​​Arbelos.

FalconX co-founder and CEO Raghu Yarlagadda said in October that he expected a "wave of consolidation" in the industry, adding that the company would actively seek acquisition targets.

Arbelos, a crypto derivatives liquidity provider, announced a $28 million financing round led by Dragonfly Capital in May 2024. FalconX is one of the investors in the round, along with Circle Ventures, Deribit, Paxos and StarkWare.

Founded in 2018 and headquartered in San Mateo, California, FalconX was valued at $8 billion when it raised $150 million in 2022. The company is backed by investors including Tiger Global, GIC and B Capital.