In a sector where consolidation has become less prophecy than inevitability, FalconX has acquired a majority stake in the parent company of Monarq Asset Management, the multi-strategy crypto hedge fund that has undergone more rebranding exercises than a failed startup (having evolved from LedgerPrime to MNNC Group before settling on its current incarnation).
The transaction, whose financial terms remain as opaque as most crypto dealings, represents FalconX’s calculated bet on institutional demand for actively managed digital asset exposure. This marks the second strategic acquisition following January’s purchase of derivatives firm Arbelos Markets—a move that, perhaps not coincidentally, brought aboard Shiliang Tang, now Monarq’s CEO and Managing Partner.
Tang’s trajectory from Wall Street volatility trader to crypto fund shepherd exemplifies the talent migration that has legitimized digital assets among institutional investors. His leadership team, populated by alumni from LedgerPrime, Tower Research, and BlockTower, manages several hundred million dollars through quantitative, delta-neutral, and directional strategies deployed across both centralized and decentralized venues. Tang previously honed his skills as a volatility trader at Bank of America Merrill Lynch before making his crypto pivot in 2017.
FalconX’s consolidation strategy extends beyond mere asset accumulation. The $8 billion-valued firm (as of 2022) seeks to construct an integrated institutional infrastructure encompassing prime brokerage, trading, credit, and custody services. Recent partnerships with Standard Chartered for cross-border settlements in Asia, the Middle East, and the United States underscore this ambition to bridge traditional finance with digital assets. The growing sophistication of liquidity solutions in the DeFi space has demonstrated the potential for institutional-grade financial products built on decentralized infrastructure.
The acquisition addresses a fundamental market inefficiency: institutional investors require sophisticated, risk-adjusted crypto exposure without the operational headaches of direct market participation. Monarq’s quantitative models, refined through multiple market cycles since 2017, provide precisely this solution for endowments, pensions, and family offices seeking digital asset diversification. The investment arrives amid increasing institutional allocations in alternative investments, as traditional investors expand their appetite for digital asset exposure.
FalconX’s aggressive M&A timeline—with additional acquisitions planned over the next two years—suggests management views current market conditions as opportune for consolidation. This positioning anticipates the inevitable shakeout where only firms offering genuine institutional-grade services survive, while others join the lengthening roster of crypto casualties.
The partnership promises to accelerate Monarq’s scaling capabilities while expanding FalconX’s reach into active asset management—a natural evolution for a firm that has already established itself as a premier digital asset prime broker.
