Cantor Competes for FalconX IPO Advisory Role, Positioning for Crypto Institutional Listing Wave

According to two anonymous informed sources, Wall Street financial services firm Cantor is currently one of the investment banks pitching potential IPO services to cryptocurrency institutional trading platform FalconX. The sources said FalconX has had preliminary informal discussions with potential advisors about going public, but has not yet officially appointed any bankers.

Cantor’s Competitive Edge: Bitcoin Lending Partnerships Establish Foundations

Competition among investment banks for IPO mandates is common on Wall Street, but Cantor has a distinct advantage that others cannot easily replicate — a deep existing partnership centered on institutional crypto lending.

In 2025, Cantor launched a $2 billion Bitcoin-backed financing program and provided FalconX with an initial credit line of over $100 million. This arrangement allows FalconX to borrow against its Bitcoin holdings as collateral, gaining liquidity without selling assets. It is one of Cantor’s first major credit services for FalconX.

This “build credit relationships first, then compete for IPO advisory” approach is a typical strategy for investment banks establishing institutional ties in the crypto market — Cantor’s early credit support allowed it to become deeply involved in FalconX’s balance sheet management, naturally positioning it as one of the first financial advisors FalconX considers when going public.

Cantor’s presence in crypto extends beyond this. Founded in 1945, this Wall Street veteran manages Tether’s U.S. Treasury reserves and has invested in multiple crypto companies. It has also publicly expressed support for blockchain infrastructure and digital asset trading, making it one of the most crypto-friendly traditional financial institutions.

FalconX’s IPO Preparation and Active Acquisition Strategy

Founded in 2018, FalconX is a primary digital asset broker serving large institutional clients like hedge funds, asset managers, and market makers, offering trade execution, liquidity, credit, and clearing. Its last public funding round was Series D in June 2022, raising $150 million with a valuation of $8 billion.

To lay a broader foundation for a potential IPO, FalconX completed three major acquisitions in 2025:

Arbelos Markets: Derivatives trading specialist, strengthening FalconX’s expertise in crypto derivatives.

Monarq Asset Management: Acquired majority stake, expanding its asset management business.

21Shares: Crypto exchange-traded product (ETP) issuer, marking an important step into regulated investment products.

These acquisitions outline FalconX’s pre-IPO strategy: integrating trading, derivatives, and asset management infrastructure to build a comprehensive institutional crypto platform, supporting a higher valuation story through increased business diversification.

Frequently Asked Questions

How likely is it that Cantor will be chosen as FalconX’s lead underwriter for the IPO?

Market analysts believe Cantor’s existing credit relationships give it a competitive edge, but IPO mandates typically involve multiple underwriters. The final decision depends on factors like each bank’s institutional investor distribution, valuation estimates, and research coverage of the crypto industry. It’s more likely that Cantor will participate as one of several lead underwriters rather than as the sole advisor, given FalconX’s size and the common practice of syndicating IPO deals.

Is FalconX’s IPO timeline affected by the current crypto market downturn?

Market conditions do pose challenges. Bitcoin has fallen from a peak of around $126,000 in October to about $70,000, and Kraken has paused its IPO plans after market pressure (having previously filed confidentially with the SEC). So far this year, BitGo (BTGO) is the only crypto-native company to go public, and its stock has dropped about 40% since IPO. In this context, whether FalconX will go public and when depends heavily on market recovery and investor risk appetite for crypto financial infrastructure companies.

Why is Cantor Fitzgerald so active in crypto?

Cantor’s crypto engagement stems from its early recognition of digital asset institutionalization. Managing Tether’s U.S. Treasury reserves makes it a core traditional financial player in the stablecoin ecosystem. Its Bitcoin-backed financing and investments in multiple crypto firms reflect a strategic extension of its fixed-income lending capabilities into digital assets, aligning with CEO Howard Lutnick’s pro-crypto stance.