FalconX, a digital asset prime brokerage, has taken steps towards a potential public offering by confidentially submitting a draft S-1 registration statement to the Securities and Exchange Commission (SEC). The company has partnered with Cantor Fitzgerald and other bankers to navigate the IPO process.
Insiders indicate that the IPO is unlikely to occur until later in the year due to prevailing market instability. FalconX, which achieved a valuation of $8 billion during a Series D funding round in June 2022, primarily serves institutional clients, including hedge funds and asset managers.
The sentiment for crypto IPOs has diminished recently, following disappointing performances from newly listed companies and a decline in trading volumes. This has led several firms, including Kraken's parent company, Payward, and others, to postpone their IPO plans as they await more favorable market conditions.
