TL;DR
- FalconX took a majority stake in the parent company of Monarq Asset Management to expand its asset and cryptocurrency management business.
- Monarq manages hundreds of millions with quantitative and directional strategies across centralized and DeFi markets, and has a 16-person team.
- FalconX plans to integrate more crypto firms over the next 24 months, after adding Arbelos Markets — a derivatives startup co-founded by Shiliang Tang — in January.
FalconX acquired a majority stake in the parent company of Monarq Asset Management, a multistrategy hedge fund specializing in cryptocurrencies.
The transaction, whose financial terms weren’t disclosed, is part of a plan to strengthen FalconX’s asset management services and expand its institutional client base. Currently, the firm serves hedge funds, proprietary trading firms, and asset managers. With this deal, it aims to onboard endowments, pension funds, and family offices seeking professional solutions to manage their digital asset and crypto positions.
Monarq Asset Management, registered in the Cayman Islands, operates with quantitative, delta-neutral, and directional strategies across centralized and decentralized markets. The firm manages several hundred million dollars and maintains a 16-person team.
FalconX Will Continue Absorbing More Companies in the Coming Months
Its CEO, Shiliang Tang, was a volatility trader at Bank of America Merrill Lynch and UBS before moving into crypto in 2017. Tang confirmed that FalconX’s arrival will allow the firm to scale its proprietary models, add new portfolio managers and technologists, and deliver institutional-grade asset management products to a wider group of investors.
FalconX has been steadily expanding its footprint in the crypto market. In January, it added Arbelos Markets to its structure, a derivatives startup co-founded by Tang. The company’s strategy is to incorporate more firms over the next 12 to 24 months to consolidate its position in private crypto markets.
Founded in 2018 and last valued at $8 billion following a $150 million funding round in 2022, FalconX provides trading, credit, and custody services for digital assets. Its backers include Tiger Global, GIC, and B Capital. According to Austin Reid, the company’s global head of revenue and business, the deal with Monarq will help FalconX expand its reach into institutional segments seeking professional wealth management solutions in crypto.
