Latest news with #RaghuYarlagadda
Arabian Post
4 days ago
- Business
- Arabian Post
FalconX Prepares for Market Debut Amid Crypto IPO Surge
FalconX, a leading cryptocurrency prime brokerage, has initiated informal talks with bankers and advisers to explore an initial public offering in 2025, signalling a significant move to satisfy burgeoning institutional demand for digital assets. The firm, which last raised $150 million in 2022 at an $8 billion valuation, is not yet retaining an underwriter—an early but strategic step toward going public. Founded in 2018, FalconX began as a crypto-focused prime broker, enabling clients to trade directly on exchanges. Today it spans three verticals—markets, custody and staking, and direct market access prime brokerage—positioning itself as a full-spectrum financial services provider for institutional clients. This evolution reflects growing investor interest in digital assets and the firm's expansion through deals and strategic integration. In early 2025, FalconX acquired Arbelos Markets, marking its entry into the derivatives segment, a lucrative but highly competitive space. It also forges partnerships with established players such as Standard Chartered, integrating global banking and foreign-exchange capabilities, and with Cantor Fitzgerald, accessing a credit facility collateralised by Bitcoin—its 'first step in a broader credit framework' to bolster institutional offerings. ADVERTISEMENT The broader crypto sector is experiencing an IPO wave. Several digital-asset platforms, including Fold, Exodus and eToro, have listed in 2025. Notably, stablecoin issuer Circle achieved a landmark $1.1 billion IPO on 5 June, marking the largest crypto-market debut in history and fuelling expectations of further listings. Following Circle's success, firms such as Bullish and Gemini filed for public listings, with Kraken and Justin Sun's Tron Group also preparing filings. Amid this sector-wide momentum, FalconX is working to enhance its public profile, seeking to craft a compelling narrative ahead of a potential IPO. The firm's strategy, according to one insider, emphasises readiness to appeal to public-market investors, including both strategic partnerships and public relations positioning. The firm's track record underpins its IPO ambition. In June 2022, it secured a $150 million Series D led by Singapore's GIC and B Capital at an $8 billion valuation. That round also involved Thoma Bravo, Wellington Management, Adams Street Partners and Tiger Global Management. CEO Raghu Yarlagadda emphasised FalconX's market‑neutral model, rigorous risk‑management and profitability amid volatility—a rarity in the crypto space. With over $430 million in capital raised to date, FalconX has demonstrated resilience, continuing to hire and expand services even as competitors retrench. GIC's commitment and the firm's strategic posture reflect stable investor confidence. Institutional demand for crypto is rapidly growing, and FalconX's moves align with this shift. The acquisition of Arbelos, banking collaboration and credit facility signal a broader ambition to integrate traditional and digital finance infrastructures, broaden offerings and close service gaps. As co-head of markets Joshua Lim observed, strategic partnerships and acquisitions enable FalconX to fill missing links that would otherwise force customers to assemble services piecemeal. Within this context, launching an IPO emerges as both a capital‑raising tool and a visibility lever. As one adviser noted, 'When you launch an IPO, you need to have a story…. You're selling yourself to the investing public'. FalconX's groundwork suggests readiness to craft that narrative, aligning with its strong financial position and strategic trajectory.
New Indian Express
29-04-2025
- Business
- New Indian Express
Tokenisation can revolutionise India's access to global capital: FalconX CEO Raghu Yarlagadda
BENGALURU: Digital asset prime broker FalconX is betting on tokenisation and artificial intelligence (AI) to drive the next wave of financial innovation - particularly in cross-border payments and real-world asset access. "Most of the world's value will be tokenised," said Raghu Yarlagadda, founder and CEO of FalconX. We believe tokenisation and AI will fundamentally reshape how assets are created, moved, and accessed globally. Tokenisation refers to the process of converting real-world assets, such as real estate, stocks, or digital goods, into blockchain-based tokens, enabling faster, more transparent transactions across a tamper-proof, distributed ledger. From money market funds to real estate, blockchain enables faster, cheaper, and more inclusive access to financial assets, he explained. India stands at a pivotal crossroad in digital finance, Yarlagadda noted, adding that crypto adoption and the India stack (a collection of indigenous digital infrastructure and apps aimed at financial inclusion) provide a foundation for the country to pioneer the next wave of global innovation. In light of evolving regulatory approaches in the US and EU, companies such as Silicon Valley-based FalconX demonstrate the tremendous economic potential that balanced regulation could unlock for India's remittance and capital markets transformation. FalconX, which has processed over USD 1.5 trillion in institutional digital asset volume, provides trading, credit, and custody infrastructure for institutional crypto participants. The company has established a dominant position in the global crypto derivatives market, handling 12-15 per cent of global crypto options trading. But the company's ambitions go beyond trading. The company recently integrated BlackRock's tokenised money market fund (BUIDL) onto its platform, allowing clients to post tokenised collateral while continuing to earn yield. It's a real-world example of traditional finance and crypto coming together, Yarlagadda said. And it's already working at scale. For India, where remittance inflows exceeded USD 125 billion in 2023, such blockchain-based innovations could be transformative. Today, the average global cost of sending remittances is about 6 per cent transaction, according to the World Bank. Settlement times can range from one to five days due to intermediaries like correspondent banks, adding to the complexities. "Blockchain removes the need for multiple middlemen. With crypto rails, peer-to-peer settlements can happen in minutes, not days - and with fees slashed by 50 to 90 percent," Yarlagadda said. FalconX's rise has coincided with global policy shift. "In 2022, FalconX Bravo, Inc., a company affiliate, became the first US Commodity Futures Trading Commission (CFTC) registered swap dealer focussed on cryptocurrency -- a status that allows it to offer derivatives under a clear, regulated framework -- something few global platforms can claim," he said. "Being regulated gives institutions the trust they need," said Yarlagadda. It's not just about compliance, but about creating market stability, deep liquidity, and reducing systemic risk, he added. That strategy is paying off. FalconX's institutional client base has grown rapidly, with the company reportedly moving tens of billions in trading volume back onshore to the US, in contrast to the industry's historical reliance on opaque offshore venues. Now, Yarlagadda is applying the same principles to tokenised finance. The company's AI-powered platform, Focal, is designed to serve as an institutional-grade decision engine, parsing market data and risk signals in real time. The firm also uses machine learning to optimise liquidity aggregation, enabling trades across 70 plus venues covering 94 per cent of global digital asset liquidity. "With the power of blockchain and efficiency of our automated middle-office systems, we've achieved what would take hundreds of people to do manually. We manage a trillion-dollar transaction pipeline with a lean, highly automated middle office," Yarlagadda said. In his view, the impact of such systems will only grow as digital assets go mainstream. In particular, tokenisation could unlock access to traditionally illiquid or fractional assets such as infrastructure bonds, private equity, or real estate sectors where India has deep capital needs and fragmented access. "Imagine tokenising an Indian municipal bond and enabling global investors to buy in, 24/7, from anywhere in the world," Yarlagadda said. "That's not just a technical shift - it's a capital markets revolution," he pointed out. "While some global firms faltered during the crypto winter or regulatory crackdowns, FalconX has doubled down on transparency, risk controls, and US compliance," he noted. India's own leadership in payments (via UPI) and digital public infrastructure gives it a strong base to build on. Yarlagadda believes the next step is unlocking cross-border efficiencies and investment flows through tokenised rails - and doing so with the same emphasis on security and governance that India has shown in other fintech domains. "India has the talent, the tech DNA, and the market size. What's needed now is a regulatory framework that enables innovation while protecting consumers," he said. As FalconX continues its global expansion -- with offices in Singapore, Hong Kong, London and Bengaluru -- it remains closely attuned to developments in India. On March 7, Yarlagadda was among 20 key industry leaders invited to US President Donald Trump's first White House Crypto Summit. "Being invited to the White House was a huge honour, not just for me personally but for the entire crypto industry. It was a pivotal moment where the US government showed that it's open for business when it comes to crypto innovation," said Yarlagadda. Yarlagadda recalls that many invitees that day represented companies that have been working hard to build a regulated and sustainable ecosystem, and the event highlighted how the US is becoming more receptive to the potential of blockchain and digital assets. If the right guardrails are in place, India can become a global leader in digital asset infrastructure. "We're excited to support that journey - technologically, strategically, and hopefully, in time, on the ground as well," Yarlagadda said.
