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FalconX Flying High with Expanding Clientele and new Round of Funding

By CIOReview | Friday, May 15, 2020

Digital asset trading platform, FalconX secures $17M in financing from a diverse group of investors

Fremont, CA: FalconX, a digital asset trading platform that helps the client obtain the best execution with the application of data science, has secured $17M in financing from renowned investors. The group of investors that participated in the financing round is Accel, Accomplice VC, Coinbase Ventures, Fenbushi Capital, Flybridge Capital Partners, Lightspeed Venture Partners, and Avon Ventures, a VC fund affiliated with FMR LLC., the parent company of Fidelity Investments. The latest funding will be used to launch new products, broaden FalconX's trade execution suite and scale infrastructure to support the growth and institutional demand for cryptocurrency. 

"We're entering an era defined by the true digitization of value - whether Bitcoin, Ethereum or new experiments such as Libra, or Digital Yuan - much like what we saw in the early 2000s with the digitization of information on the internet. For open, permissionless, and truly global digital assets to be adopted by mainstream institutions, today's digital financial infrastructure is grossly inadequate," said Raghu Yarlagadda, FalconX CEO and co-founder. "FalconX is building the connective tissue, with seamless price discovery, trade execution, and value transfer. Our technology will provide the infrastructure for the future of digital assets."

From the last ten months, FalconX has generated about $7 billion in global trading volume at the rate of over 600 percent hike each quarter. This growth is driven by tight spreads, hidden fees, eliminating slippage, and maintaining enterprise-grade security. Considering trading as the principal, FalconX has developed robust liquidity with the combination of lit liquidity pools/exchanges and proprietary dark pools. The company's clientele comprises more than 100 financial institutions across the sub-sections of traditional finance such as proprietary trading firms, hedge funds, payment gateways, over-the-counter trading desks, exchanges, and cryptocurrency miners. By expanding its regulatory footprint, FalconX has seen continuous growth in its customer base across newer jurisdictions and product lines. 

"FalconX allows us to operate a more productive trading desk by solving for some of the major inefficiencies in the crypto markets. I have been extremely impressed with FalconX's relentless focus on delivering value-added solutions and superior customer service," said Brad Koeppen, Head of Trading and Business Development at CMT Digital, a proprietary trading and financial services firm that was founded in 1997, with offices across US & Europe.

The digital asset trading platform, FalconX, was founded by Raghu Yarlagaddu and Prabhakar Reddy in 2018. Raghu, an entrepreneur and an engineer by education, held important product leadership roles before the inception of FalconX. One of these roles was to scale Chromebooks to a multi-billion dollar revenue business at Google. Prabhakar Reddy is a serial entrepreneur, an investor, and an engineer, who previously developed a Blockchain and enterprise SaaS investments at Venture capital firm Accel. The founding team of FalconX is a perfect blend of Silicon Valley and Wall Street, making use of the experience from Google, Citadel, Goldman Sachs, Jump Trading, PayPal, Pantera Capital, WorldQuaint, PEAK6 investments, and Kraken. 

"FalconX demonstrated exceptional growth with institutional counterparties by focusing on technology and reliability during volatile market conditions. They've proven themselves at scale without compromising on enterprise-grade security and high compliance standards - capturing a tremendous opportunity to serve the next generation of institutions looking to enter the digital asset space," said Shekhar Kirani, General Partner at Accel.

See also: Top Financial Security Solution Companies