Cantor Eyes FalconX IPO Mandate Amid Crypto Market Headwinds

Wall Street firm Cantor Fitzgerald is among the investment banks vying to lead cryptocurrency prime broker FalconX through a potential initial public offering, according to sources familiar with the matter. While preliminary discussions with prospective advisors have taken place, no formal banking appointments have been made, and both companies have declined to publicly address the reports.

The two firms share an established institutional relationship. In 2025, Cantor extended a credit facility exceeding $100 million to FalconX as part of a broader $2 billion bitcoin-backed financing program, enabling the crypto brokerage to leverage digital asset collateral for liquidity without liquidating holdings. That existing partnership could give Cantor a competitive edge in winning the IPO mandate.

FalconX, founded in 2018, operates as a digital asset prime broker catering to institutional clients such as hedge funds, asset managers, and market makers. The platform provides trade execution, liquidity access, clearing, and credit services. It was last valued at $8 billion following a $150 million Series D round in 2022.

The company has been aggressively expanding ahead of a possible public listing, completing three major acquisitions in 2025 alone — derivatives firm Arbelos Markets, a majority stake in Monarq Asset Management, and crypto ETP issuer 21Shares — broadening its footprint across trading, derivatives, and regulated investment products.

Despite ongoing crypto market volatility — with bitcoin declining sharply from record highs — FalconX and competitor Copper are pressing forward with IPO considerations. Crypto exchange Kraken, by contrast, recently paused its listing plans amid unfavorable conditions. Industry analysts suggest 2026 could be a pivotal year for digital asset infrastructure firms pursuing public markets, following last year's listings by exchanges including Gemini and Bullish.

Cantor, a New York-based financial services firm founded in 1945, has steadily deepened its presence in the digital asset space, including managing reserves for stablecoin issuer Tether.