Wall Street heavyweight Cantor among investment banks pitching FalconX for its potential IPO

Crypto trading firm FalconX's CEO has previously said it is considering a public listing.

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What to know:

• Cantor is among the firms pitching FalconX for its potential IPO, though no bankers have been formally appointed yet, according to sources.
• FalconX, an institutional-focused crypto prime broker, is evaluating listing plans even as a tough digital asset market has seen firms such as Kraken pause their IPOs.
• The company has been scaling through acquisitions, while Cantor deepens its footprint in crypto markets.

Wall Street financial services firm Cantor is among investment banks that are pitching cryptocurrency trading platform FalconX for its potential IPO, according to two people with knowledge of the matter.

The company has held preliminary talks with possible advisors, but FalconX has not yet formally appointed bankers for its initial public offering, the people said, who spoke on condition of anonymity as the matter is private.

FalconX declined to comment. Cantor did not respond to a request for comment by publication time.

Investment banks often pitch companies for an IPO by presenting themselves as the best partner to take the business public, combining valuation analysis, market timing advice, and distribution strength.

The goal is to win the mandate by convincing the company that they can maximize valuation, ensure a smooth listing process, and generate strong aftermarket performance. While some firms might lead the IPO process, most deals are done through a syndicate of multiple banks.

Last year, Decrypt reported in June that FalconX had held informal talks with bankers and consultants about going public. Later in the year, the company's CEO, Raghu Yarlagadda, told the Wall Street Journal that the firm was considering an IPO.

However, the crypto market has been under pressure since then, with the bitcoin price falling from an all-time high of $126,000 in October to near $70,000. Recently, CoinDesk reported that crypto exchange Kraken has put its IPO plans on hold after confidentially filing with the SEC in November, with sources saying the process will likely restart once the environment improves. To date, digital asset custodian BitGo (BTGO) is the only crypto native firm to list this year. The shares have fallen around 40% since their IPO.

Despite this tough market backdrop, crypto firms such as FalconX and Copper are continuing talks about potential public listings. Last year, several crypto exchanges, including CoinDesk parent Bullish (BLSH) and Gemini (GEMI), went public, and industry observers say that in 2026, financial infrastructure firms could be next in line for IPOs.

Cantor connection

Cantor and FalconX already have an existing relationship centered on institutional crypto lending, with the investment bank providing one of the first major credit facilities to the crypto prime broker.

In 2025, Cantor launched a $2 billion bitcoin-backed financing program and extended an initial credit line of over $100 million to FalconX, allowing it to borrow against bitcoin BTC$70,264.00 collateral and access liquidity without selling assets. The deal is part of a broader partnership aimed at building institutional-grade credit infrastructure in digital assets, reflecting growing convergence between traditional finance and crypto markets.

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

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

Founded in 2018, the company operates as a digital asset prime broker, offering services including trade execution, liquidity access, credit and clearing. The company raised $150 million in a Series D financing round in June 2022, valuing the platform at $8 billion.

While no formal announcement has been made, FalconX has been scaling up ahead of a potential listing and has pursued an aggressive acquisition strategy over the past year as it builds out a full-service institutional crypto platform.

In 2025, the firm acquired derivatives specialist Arbelos Markets and took a majority stake in Monarq Asset Management, before striking a deal for crypto exchange-traded product (ETP) issuer 21Shares, its third major transaction of the year. Together, the deals expand FalconX’s reach across trading, derivatives, and asset management, reflecting a broader push to consolidate infrastructure and offer more regulated, institutional-grade investment products.

Cantor has steadily expanded its footprint in digital assets, positioning itself as one of the more active traditional finance firms in crypto markets. The Wall Street firm manages Tether’s U.S. Treasury reserves and has backed several crypto ventures, while publicly signaling support for blockchain infrastructure and trading businesses.

Its growing involvement reflects a broader push to bridge institutional capital with the digital asset ecosystem, particularly as more crypto companies explore public listings.

Cantor is a global financial services firm headquartered in New York. Founded in 1945, it’s best known as a major player in fixed-income trading, particularly U.S. Treasuries, as well as 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

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