Institutional Crypto Startup FalconX Raises $50M in Round led by Tiger Global

Tiger Global and B Capital are the primary investors in the latest round. They join Coinbase Ventures, Accel, FMR LLC and others in backing FalconX.

FalconX, a cryptocurrency exchange focused on institutional investors, has raised $50 million from Tiger Global and B Capital Group — highlighting once again that digital assets are becoming more mainstream.

FalconX didn’t specify how the funds would be deployed, but if it’s anything like previous fundraisers, the money will likely go towards business development.

FalconX raised $17 million in May 2020 to finance several growth initiatives, including adding new infrastructure and expanding its product offerings. At the time, FalconX told Cointelegraph that it uses data science to provide a more competitive trading environment for professional investors.

In addition to Tiger Global and B Capital Group, FalconX is backed by major players like Accel, Coinbase Ventures and Avon Ventures, a venture capital firm with ties to Fidelity Investments via FMR LLC.

Scott Shleifer, a partner at Tiger Capital, described FalconX as a potential “industry leader in the institutional cryptocurrency market.” The exchange’s growth over the past year seems to indicate that it is headed in that direction. FalconX claims that its net revenues have grown 46 times over the past 12 months, driven by higher institutional demand for cryptocurrency.

The arrival of institutional investors was one of crypto’s biggest stories of 2020. That trend appears to be intensifying as Wall Street finds new ways to offer exposure to digital assets.

As Cointelegraph recently reported, JPMorgan Chase is launching a Cryptocurrency Exposure Basket to provide direct exposure to 11 companies involved in cryptocurrency. As a new debt instrument, the Basket allocates 20% to MicroStrategy, 18% to Square and 15% to Riot Blockchain.

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Solios, Inc. is registered as a federal money services business with FinCEN. FalconX Bravo, Inc. is registered with the U.S. Commodities Futures Trading Commission (CFTC) as a swap dealer. FalconX Limited is a registered Class 3 VFA service provider under the Virtual Financial Assets Act of 2018 with the Malta Financial Services Authority. FalconX Limited, FalconX Bravo, Inc., nor Solios, Inc. are not registered with the Securities & Exchange Commission or the Financial Industry Regulatory Authority. FalconX Foxtrot Pte Ltd and FalconX Golf Pte. Ltd. are not regulated by the Monetary Authority of Singapore. FalconX Hong Kong Limited is not regulated by the Securities and Futures Commission, Hong Kong.

“FalconX” is a marketing name for FalconX Limited and its affiliates. Availability of products and services is subject to jurisdictional limitations and capabilities of each FalconX entity. For the full disclaimer and additional details, please visit: https://www.falconx.io/disclaimers

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