FalconX has acquired a majority stake in Monarq Asset Management, marking another chapter in the digital asset sector‘s inevitable march toward consolidation—a trend the San Mateo-based prime broker‘s own CEO predicted just months earlier.
The June 2 acquisition, with undisclosed terms (naturally), represents FalconX‘s strategic pivot toward institutional asset management services.
Rather than remaining content as a digital asset prime broker serving hedge funds and proprietary trading firms, FalconX is casting a wider net to capture endowments, pensions, and family offices—those bastions of traditional finance increasingly curious about crypto’s allure.
Monarq, formerly known as MNNC Group, brings quantitative and directional trading strategies across both centralized and decentralized venues.
The multi-strategy investment firm, founded by LedgerPrime and BlockTower alumni, has navigated multiple market cycles since 2017—a lifetime in crypto years.
Their focus on delta-neutral strategies and risk-adjusted returns suggests institutional infrastructure designed to weather digital asset volatility without the emotional whiplash typical of retail investors.
The timing appears deliberate.
As institutional capital allocation toward digital assets accelerates, FalconX positions itself beyond traditional prime brokerage into actively managed strategies.
Monarq’s CEO Shiliang Tang, a former Bank of America Merrill Lynch volatility trader who entered crypto in 2017, represents the breed of traditional finance professionals who recognized digital assets’ potential before it became fashionable.
This acquisition reflects broader market maturation—or at least the industry’s attempt to appear mature.
FalconX’s expansion into asset management services acknowledges that sophisticated investors seek more than basic trading infrastructure; they demand integrated solutions combining execution, custody, and portfolio management.
Monarq’s experience operating across multiple market venues while maintaining institutional-grade risk discipline aligns with FalconX’s client base expansion goals. The firm’s data-centric approach spanning centralized and decentralized markets enhances FalconX’s analytical capabilities for institutional clients.
The firm’s quantitative expertise becomes particularly valuable as digital asset markets develop more sophisticated trading strategies beyond simple directional bets.
Whether this consolidation wave produces sustainable competitive advantages or merely reshuffles existing market share remains unclear.
However, FalconX’s move suggests confidence that institutional demand for professionally managed digital asset exposure will continue growing, regardless of crypto’s perpetual identity crisis between revolutionary technology and speculative playground. The digital assets are increasingly influencing traditional financial markets, creating new opportunities for integrated trading strategies that bridge both sectors. The acquisition follows FalconX’s previous acquisition of derivatives startup Arbelos Markets in January, demonstrating continued strategic expansion.
