Sources familiar with the matter say that cryptocurrency exchange FalconX has secretly filed a draft S-1 registration statement with the U.S. Securities and Exchange Commission and has hired investment banks such as Cantor to assist with preparations for a potential initial public offering (IPO). However, given the increased market volatility and weak trading activity, this listing is not expected to materialize anytime soon.
Preparatory work for listing has begun.
The report, citing sources familiar with the matter, stated that this confidential filing is the first step in FalconX's push for a US listing. The sources also indicated that FalconX has engaged Wall Street firm Cantor and other banks as advisors to assist in evaluating and advancing the IPO process.
Neither FalconX nor Cantor commented on the matter. According to sources, if the market environment does not improve significantly, the official launch is more likely to occur later this year.
Key service clients
FalconX, headquartered in California and founded in 2018, primarily provides digital asset brokerage and trading services to clients including hedge funds, asset management firms, and market makers. The company's business covers trade execution, liquidity access, lending, and clearing, positioning itself as a prime broker for digital assets.
In June 2022, FalconX raised $150 million in its Series D funding round, valuing the company at $8 billion. This is currently the most recent valuation reference in publicly available information.
- Established in: 2018
- Latest publicly disclosed funding: Series D, June 2022
- Valuation at the time: $8 billion
The hype surrounding crypto IPOs has cooled down.
Several crypto companies had initially viewed 2026 as an extension of their IPO window. Previously, the IPOs of companies like Circle and Bullish had sparked renewed market attention to capital market opportunities in the digital asset business.
However, the recent weakening market environment, declining trading volume, and lackluster stock performance of some recently listed crypto companies have slowed down subsequent IPOs. The report mentions that Kraken's parent company Payward, Ethereum software developer Consensys, hardware wallet manufacturer Ledger, and asset management company Grayscale have all postponed their IPOs.
Meanwhile, some companies continue to move forward with their plans. Blockchain.com announced last week that it had secretly filed for an IPO with the U.S. Securities and Exchange Commission. Securitize, on the other hand, has chosen to merge with Nasdaq-listed special purpose acquisition company Cantor Equity Partners II in order to seek a public market entry.
