Consolidation—that inevitable force reshaping every maturing industry—has claimed another victim in the digital asset space, as FalconX announced its acquisition of a majority stake in Monarq Asset Management on June 2, 2025.
Consolidation devours another crypto player as FalconX absorbs Monarq Asset Management in digital asset space reshuffling.
The institutional digital asset prime broker, apparently unsatisfied with merely facilitating trades, has decided to absorb the multi-strategy crypto hedge fund in a move that signals either prescient empire-building or an expensive lesson in vertical integration.
FalconX’s appetite for acquisitions appears insatiable, having already devoured derivatives firm Arbelos Markets in January 2025.
CEO Raghu Yarlagadda’s prediction of industry consolidation seems less prophetic and more self-fulfilling, considering his company’s role as consolidator-in-chief.
The Monarq acquisition represents a calculated expansion into asset management, targeting the increasingly crowded field of endowments, pensions, and family offices seeking exposure to digital assets without the accompanying vertigo.
Monarq, the Cayman Islands-registered entity formerly known as MNNC Group and LedgerPrime (because apparently rebranding is cheaper than achieving consistent performance), brings several hundred million dollars in assets under management and a 16-person team specializing in quantitative, delta-neutral, and directional strategies.
Led by Shiliang Tang, whose journey from Bank of America Merrill Lynch volatility trader to crypto hedge fund CEO exemplifies the industry’s talent migration patterns, Monarq has assembled alumni from LedgerPrime, Tower Research, and BlockTower.
The strategic rationale appears sound, if predictable: FalconX gains diversified revenue streams while Monarq accesses superior infrastructure and institutional distribution.
This combination promises to accelerate Monarq’s growth trajectory, scaling both its proprietary quantitative models and client base.
The timing coincides with institutional capital allocation toward digital assets intensifying, though whether this represents genuine adoption or fear of missing out remains deliciously unclear. Monarq’s track record since 2017 provides some reassurance to institutions wary of crypto’s volatility, having weathered multiple market downturns and recoveries. The Miami, Florida roots of the original LedgerPrime group that founded Monarq underscore the geographic diversification of crypto talent beyond traditional financial centers.
FalconX’s $8 billion valuation from 2022 (a vintage year for inflated crypto valuations) presumably provides sufficient capital for continued acquisitions.
With further deals anticipated over the next 12-24 months, the company appears determined to construct a complete digital asset ecosystem. Understanding the tokenomics of acquired assets will be crucial for FalconX to properly evaluate and integrate future acquisitions into their expanding portfolio.
Whether this consolidation creates sustainable competitive advantages or merely expensive complexity will ultimately depend on execution—and the crypto market’s notorious capacity for humbling even the best-laid plans.
