Crypto Dealer FalconX Acquires Majority Stake in Monarq

Crypto prime dealer FalconX has reportedly acquired a majority stake in Monarq Asset Administration’s guardian firm, beforehand owned by bankrupt trade FTX.

According to a June 2 report from Bloomberg, the transfer seeks to increase the agency’s institutional shopper base and broaden its asset administration companies.

Monarq Asset Administration, previously referred to as MNNC Group, is a Cayman Islands-registered fund. Previous to working as MNNC, the hedge fund was known as LedgerPrime and was a part of the FTX empire earlier than the trade’s collapse. Phrases of the deal between FalconX and Monarq’s guardian firm weren’t disclosed.

Based in 2018, FalconX has moved to increase its footprint in current months. In January, the prime dealer acquired derivatives startup Arbelos Markets. In Might, the corporate introduced a partnership with Standard Chartered to scale institutional crypto banking.

FalconX reportedly views its stake in Monarq as a technique to increase its institutional shopper base past hedge funds, companies, and asset managers. Advantages could embrace scaling quantitative fashions and rising the agency’s workforce.

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FalconX and the CFTC

FalconX says it’s the world’s largest digital asset prime brokerage, executing over $1.5 trillion value of buying and selling quantity with entry to 94% of world digital asset liquidity. In Might 2024, it settled with the US Commodity Futures Trading Commission (CFTC) for $1.8 million in penalties and disgorgement for allegedly failing to register with the company.

As a part of the settlement, FalconX agreed to cease providing companies to US residents.

In June 2022, the dealer raised $150 million at an $8 billion valuation as a part of its Collection D financing spherical. Later that yr, it might survive the FTX collapse. In accordance with the dealer, the trade held 18% of its unencumbered cash equivalents.

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