Prominent investment firm Cantor engages in discussions with FalconX regarding its possible initial public offering.

The CEO of crypto trading company FalconX has indicated that the firm is exploring the possibility of going public.

Wall Street firm Cantor is vying to provide advisory services to crypto trading platform FalconX regarding its IPO. (Lo Lo/Unsplash)

Key points:

• Cantor is one of the firms proposing its services to FalconX for a potential IPO, although no bankers have been officially appointed yet, as per insider information.
• FalconX, which focuses on institutional clients as a crypto prime broker, is assessing its listing options despite a challenging environment in the digital asset market, which has led companies like Kraken to pause their IPO initiatives.
• The firm has been growing through acquisitions, while Cantor is expanding its presence in the crypto sector.

Article Overview

BTCBTC$70,426.40◢4.75%

The financial services company Cantor is among the investment banks presenting proposals to cryptocurrency trading platform FalconX for its possible IPO, according to two sources familiar with the situation.

The company has engaged in initial discussions with potential advisors, but FalconX has yet to formally select bankers for its IPO, according to individuals who requested anonymity due to the confidential nature of the discussions.

FalconX chose not to provide a comment. Cantor did not reply to a request for comment by the time of publication.

Investment banks typically approach companies regarding IPOs by positioning themselves as the optimal partner for taking the business public, offering valuation assessments, market timing guidance, and distribution capabilities.

The objective is to secure the mandate by persuading the company that they can enhance valuation, facilitate a seamless listing process, and achieve strong aftermarket results. While some firms might lead the IPO process, most transactions are conducted through a syndicate of various banks.

Last year, Decrypt reported in June that FalconX had informal discussions with bankers and consultants about pursuing a public offering. Later, the company’s CEO, Raghu Yarlagadda, informed the Wall Street Journal that the firm was contemplating an IPO.

However, the cryptocurrency market has faced challenges since then, with Bitcoin’s price decreasing from a peak of $126,000 in October to around $70,000. Recently, CoinDesk noted that crypto exchange Kraken has suspended its IPO plans after filing confidentially with the SEC in November, with insiders indicating that the process may resume once conditions improve. So far, digital asset custodian BitGo (BTGO) is the only crypto-native company to have gone public this year, experiencing a drop of roughly 40% since its IPO.

Despite the challenging market conditions, crypto firms like FalconX and Copper continue discussions regarding potential public listings. Last year, several crypto exchanges, including CoinDesk parent Bullish (BLSH) and Gemini (GEMI), went public, and industry analysts predict that financial infrastructure firms may be next in line for IPOs in 2026.

Cantor’s Involvement

Cantor and FalconX already maintain a relationship focused on institutional crypto lending, with the investment bank being one of the first to offer a significant credit facility to the crypto prime broker.

In 2025, Cantor initiated a $2 billion bitcoin-backed financing program and provided an initial credit line exceeding $100 million to FalconX, enabling it to leverage bitcoin BTC$70,426.40 collateral and gain liquidity without liquidating assets. This agreement is part of a broader collaboration aimed at establishing institutional-grade credit infrastructure in digital assets, highlighting the increasing integration between traditional finance and crypto markets.

If Cantor secures the IPO mandate, it would likely be attributed to the existing relationship with the trading firm.

FalconX is a U.S.-based cryptocurrency trading and brokerage company that primarily caters to large institutional clients, including hedge funds, asset managers, and market makers.

Founded in 2018, the firm acts as a digital asset prime broker, providing services such as trade execution, access to liquidity, credit, and clearing. The company raised $150 million in a Series D funding round in June 2022, valuing the platform at $8 billion.

While no official announcement has been made, FalconX has been expanding in preparation for a potential listing and has employed an aggressive acquisition strategy over the past year to develop a comprehensive institutional crypto platform.

In 2025, the firm acquired derivatives expert Arbelos Markets and took a majority stake in Monarq Asset Management, before finalizing a transaction with crypto exchange-traded product (ETP) issuer 21Shares, marking its third significant deal of the year. Collectively, these acquisitions enhance FalconX’s capabilities across trading, derivatives, and asset management, reflecting a wider effort to consolidate infrastructure and offer more regulated, institutional-quality investment products.

Cantor has consistently expanded its presence in digital assets, establishing itself as one of the more proactive traditional finance entities in the crypto markets. The Wall Street firm manages Tether’s U.S. Treasury reserves and has supported various crypto initiatives while openly endorsing blockchain infrastructure and trading operations.

Its increasing involvement signifies a broader endeavor to connect institutional capital with the digital asset ecosystem, especially as more crypto enterprises consider public offerings.

Cantor is a worldwide financial services firm based in New York. Established in 1945, it is recognized as a key player in fixed-income trading, particularly U.S. Treasuries, as well as in investment banking, brokerage, and asset management.

Read more: Crypto custody firm Copper in early talks for IPO as crypto ‘plumbing’ becomes new Wall Street favorite