FalconX Engages Cantor Fitzgerald for IPO Discussions Amid Challenging Crypto Market

Crypto prime broker FalconX has held preliminary discussions with potential advisors, including Wall Street heavyweight Cantor Fitzgerald, regarding a potential initial public offering (IPO), though no banks have been formally appointed to underwrite the deal.

The company, last valued at $8 billion during its June 2022 Series D funding round, is evaluating listing plans even as the broader crypto market faces pressure, with bitcoin down approximately 45% from its October 2025 all-time high and competitors such as Kraken pausing their IPO efforts. FalconX CEO Raghu Yarlagadda has previously confirmed the firm is considering going public.

IPO Discussions and Banker Pitches

Preliminary Talks, No Formal Mandate

FalconX has engaged in initial conversations with potential advisors, with Cantor Fitzgerald emerging as one of the investment banks actively pitching the company for its potential IPO. However, the firm has not yet formally appointed any banks to manage the offering, and the process remains in early stages. Investment banks typically pitch prospective IPO clients by presenting valuation analysis, market timing advice, and distribution strength, aiming to secure the mandate to lead the public listing.

CEO’s Public Statements

Yarlagadda has previously indicated that the company is exploring a public listing. In mid-2025, FalconX held informal discussions with bankers and consultants about going public, and the CEO later confirmed that an IPO was under consideration.

Market Context and Industry Environment

Challenging Crypto Market Backdrop

FalconX’s IPO deliberations come during a period of significant market pressure for the cryptocurrency sector. Bitcoin has fallen from its October 2025 all-time high of approximately $126,000 to near $70,000, a decline of roughly 45%. This downturn has prompted several crypto firms to reassess their public listing timelines. Kraken, which confidentially filed its S-1 with the SEC in November 2025, has reportedly put its IPO plans on hold and will likely resume only when market conditions improve.

Limited 2026 IPO Activity

To date, digital asset custodian BitGo is the only crypto-native firm to complete an IPO in 2026, with its shares declining approximately 40% since listing. Despite the challenging environment, some crypto firms continue to pursue public offerings. Industry observers suggest that financial infrastructure companies may be the next wave of crypto IPOs, with firms like FalconX and Copper advancing discussions.

Valuation Context

FalconX raised $150 million in a Series D financing round in June 2022, valuing the platform at $8 billion. The company has attracted investment from prominent backers including Accel, Fidelity, B-Capital, Tiger Global, Accomplice, Coinbase, Fenbushi Capital, Flybridge Capital, and Lightspeed Venture Partners.

FalconX’s Relationship with Cantor Fitzgerald

Existing Institutional Lending Partnership

Cantor and FalconX already maintain a significant relationship centered on institutional crypto lending. In 2025, Cantor launched a $2 billion bitcoin-backed financing program and extended an initial credit line of over $100 million to FalconX. This facility allows FalconX to borrow against bitcoin collateral and access liquidity without selling assets, forming part of a broader partnership aimed at building institutional-grade credit infrastructure in digital assets.

Strategic Implications

The existing relationship positions Cantor favorably in the IPO pitch process, as familiarity with FalconX’s business model and financial operations could provide advantages in underwriting a public listing. The deal reflects growing convergence between traditional finance and crypto markets, with Cantor steadily expanding its digital asset footprint, including managing Tether’s U.S. Treasury reserves and backing various crypto ventures.

Growth Strategy and Acquisitions

Expansion Through M&A

FalconX has been scaling aggressively ahead of a potential listing through strategic acquisitions. In 2025, the firm acquired derivatives specialist Arbelos Markets and took a majority stake in Monarq Asset Management. The company also struck a deal for crypto exchange-traded product (ETP) issuer 21Shares, marking its third major transaction of the year. Together, these deals expand FalconX’s reach across trading, derivatives, and asset management, reflecting a broader push to consolidate infrastructure and offer more regulated, institutional-grade investment products.

Frequently Asked Questions

Is FalconX definitely going public?

No formal decision has been announced. FalconX has engaged in preliminary discussions with potential advisors including Cantor Fitzgerald, but no banks have been formally appointed, and the company continues to evaluate its options. CEO Raghu Yarlagadda has previously confirmed that an IPO is under consideration.

Why is FalconX pursuing an IPO during a market downturn?

Despite challenging market conditions, FalconX continues to advance discussions about a potential public listing. The company has been scaling through acquisitions and building out institutional infrastructure, positioning itself for long-term growth. Industry observers suggest that financial infrastructure firms may be better positioned for IPOs than trading-focused platforms.

What is FalconX’s current valuation?

FalconX was valued at $8 billion during its Series D funding round in June 2022, when it raised $150 million from investors including B Capital and others. The company’s current valuation in the context of a potential IPO has not been disclosed.

How does FalconX’s relationship with Cantor Fitzgerald impact its IPO prospects?

Cantor and FalconX already maintain a significant institutional lending relationship, with Cantor providing a $100 million+ credit line to FalconX backed by bitcoin collateral. This existing partnership could position Cantor favorably in the IPO pitch process, though no banks have been formally appointed to underwrite the offering.