Digital asset prime broker FalconX has acquired a majority stake in the parent company of Monarq Asset Management, a multi-strategy crypto hedge fund, as part of a broader push to build out institutional-grade digital assets management capabilities, according to a report by Bloomberg.
While financial terms were not disclosed, FalconX described the move as a strategic investment to diversify its client base beyond hedge funds and proprietary trading firms, and into more traditional institutional channels – including endowments, pension funds, and family offices.
“We’re seeing increased demand from institutional allocators looking for actively managed crypto exposure,” said Austin Reid, Global Head of Revenue and Business at FalconX. “This stake gives us a platform to meet that demand with scalable, quantitative, and compliant solutions.”
Headquartered in the Cayman Islands, Monarq (formerly MNNC Group) was founded by the team behind LedgerPrime, a well-known crypto hedge fund. Led by CEO Shiliang Tang, a former volatility trader at Bank of America Merrill Lynch and UBS, Monarq manages several hundred million dollars in assets globally and runs a 16-person team across quantitative, delta-neutral, and directional strategies on both centralised and decentralised venues.
“With FalconX’s strategic backing, we can accelerate the growth of our quant platform, expand our portfolio management team, and continue building a top-tier crypto asset management business,” said Tang.
The acquisition marks another step in FalconX’s aggressive M&A strategy. In January, the firm acquired Arbelos Markets, a crypto derivatives startup co-founded by Tang. FalconX CEO Raghu Yarlagadda has previously signalled that a consolidation wave is underway in the digital asset space—particularly among private market players.
“We believe we’re entering a period of structural consolidation, especially in digital asset infrastructure and fund management,” Reid added. “We’re actively evaluating further acquisitions to bring under the FalconX umbrella.”
