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Monday, January 30, 2023

Crypto brokerage FalconX raises $150M at $8B valuation

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Despite the continued bearish pattern in cryptocurrency markets, enterprise capital companies proceed pouring capital into main business gamers like FalconX.

FalconX, the institutional-level digital asset platform and crypto brokerage, has raised $150 million in recent funding as a part of its Series D financing spherical.

Completed in early June, the funding spherical values FalconX at $8 billion, greater than doubling from its earlier Series C-round valuation of $3.75 billion in August 2021, the agency introduced to Cointelegraph on Wednesday. The agency has now raised greater than $430 million in complete.

FalconX’s newest funding spherical was led by the Singaporean sovereign wealth fund GIC and Facebook’s Eduardo Saverin-backed B Capital Group. Other traders included outstanding business traders and VC companies like Tiger Global Management, Adams Street and Thoma Bravo.

The new funding spherical will assist FalconX allow new markets for its institutional clients in addition to present new merchandise, CEO Raghu Yarlagadda advised Cointelegraph. “The investment will allow us to further accelerate growth by looking at M&A opportunities that add strategic value to our existing core offerings. Similarly, we’re looking to add best-in-class talent,” Yarlagadda added.

FalconX CEO additionally famous that the present bear market didn’t influence the corporate, stating:

“FalconX has had no material exposure in this market because of our robust risk management program. We are financially strong and growing because we have a market-risk neutral business model.”

Yarlagadda wend on to say that FalconX’s credit score choices are “over-collateralized,” backed by liquid collateral and “all assets are deployed only within the FalconX platform.”

“This allows us to have a strong real-time view of risk management and mitigate risk. In these market conditions, we tend to see more activity in market-neutral strategies than directional,” the CEO famous. He additionally added that FalconX has continued to see robust consumer development in spot and derivatives markets.

Related: Despite bearish trend, hedge funds are dipping their toes in crypto: PwC

The funding spherical comes shortly after FalconX became one of many first crypto swap sellers registered with the United States National Futures Association in April 2022. The agency additionally grew to become one of many first crypto-focused Primary Level Members of the International Swaps and Derivatives Association.