Crypto broker FalconX, a crypto platform and financial wholesaler for Wall Street, has raised $150 million at an $8 billion valuation, cementing itself as a crypto "unicorn" eight times over.
Led by B Capital and Singapore's sovereign wealth fund, GIC, the series D more than doubles the prime broker’s August 2021 valuation.
This fundraise also serves as a potential signal that institutional demand for digital assets remains robust, even amid major selloffs in cryptocurrencies this year.
Still, data from crypto fundraising database Dove Metrics shows venture dollars are being deployed into the space at a slower pace in June. While nine-figure deals remain a weekly occurrence, crypto startups have raised a total of $2.6 billion since the start of June, on pace to drop below May and April totals, which reached $4.2 billion and $6.8 billion, respectively.
FalconX offers crypto trading, credit/margin clearing, and settlement services to financial firms in need of a platform that prioritizes risk management.
Unlike most crypto brokers and exchanges which manage their own book of assets while providing liquidity services to customers, FalconX takes no market risk, Raghu Yarlagadda, FalconX's CEO and founder, said in a statement.
“We’re not in conflict with our clients and their trading strategies," Yarlagadda added. "In light of recent market conditions, this is extremely valuable to our clients who demand a reliable market infrastructure provider."
The policy garners more credence given the intertwined string of financial troubles that have recently plagued crypto firms such as Celsius Network, Three Arrows Capital, Babel Finance, BlockFi, Voyager and others.
FalconX is also among the crowd of crypto firms that are using existing regulation and financial standards as an advantage for attracting institutional customers. It recently became the first crypto swaps dealer to register with the U.S. Commodities and Exchange Commission (CFTC).
The firm is looking to fill 16 job openings at the time of this writing.