FalconX Eyes Miami for Expansion as CEO Plans Hiring Push

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FalconX expects to develop to roughly 160 workers from 90 over the following six months, CEO Raghu Yarlagadda stated.

He additionally stated the institutional crypto alternate is evaluating Miami as a possible location for enlargement after a number of corporations have opened workplaces within the crypto-friendly metropolis in latest months.

FalconX is attempting to faucet the rising demand from institutional traders buying and selling cryptocurrencies as bigger rivals such as Coinbase do the identical. On its final earnings name, Coinbase stated that establishments accounted for 69% of its $462 billion in second-quarter buying and selling quantity.

While FalconX is primarily inner progress, it’s additionally contemplating acquisitions, Yarlagadda stated in an interview with CoinDesk.

The alternate is potential offers so as to add expertise and can also be contemplating strategic purchases that can assist the corporate turn into extra of a “one-stop shop” in crypto for institutional traders.

Read extra: Crypto Trading Startup FalconX Achieves Unicorn Status With Latest Raise

He stated that pension funds are beginning to dip their toes into cryptocurrency via hedge funds.

“Instead of getting direct exposure to crypto, like parking some money in bitcoin, they’re getting indirect exposure to the hedge funds that typically deploy money,” Yarlagadda stated.

SkyBridge Capital founder Anthony Scaramucci instructed Bloomberg final week that almost all of institutional traders are nonetheless reluctant to spend money on crypto and blockchain expertise, however that could be altering, in response to Yarlagadda, who lately met with six of the highest 10 hedge funds on the planet.

Hedge funds are allocating about 1% of their property below administration towards crypto, Yarlagadda stated. The hedge funds he met with stated they wish to enhance that determine to eight% to 9%., whereas asset managers need to get to about 5% over the following 12 to 18 months, he added.

“That’s why we are hiring as fast as we can,” he stated.

Last month, FalconX reached unicorn standing (startups value at the least $1 billion) with a $210 million Series C funding spherical led partly by Tiger Global that valued the agency at $3.75 billion.

FalconX’s earlier funding spherical, introduced in March, valued the corporate at $675 million.