Crypto trading firm FalconX has taken steps toward a potential initial public offering (IPO) by confidentially submitting a draft S-1 registration statement to the Securities and Exchange Commission (SEC). The company has enlisted the services of Cantor and other banking experts to navigate the IPO process, although the actual listing is not anticipated until later this year due to the current volatile market landscape.
What to know:
— According to an insider, FalconX has filed a draft S-1 with the SEC and is receiving advice from Cantor regarding its IPO plans.
— The firm, valued at $8 billion in 2022, caters to institutional clients such as hedge funds, asset managers, and market makers.
— The sector is experiencing delays in IPO timelines due to cooling investor sentiment, reduced trading activity, and mixed results from recent crypto IPOs, affecting companies like Kraken’s parent Payward, Consensys, and Ledger.
FalconX, based in California, has submitted a draft S-1 registration statement with the SEC, marking the initial phase of its journey toward a public listing, as reported by a source familiar with the situation. The company has brought on board Wall Street firm Cantor and other financial advisors to assist with its IPO, with the source speaking on the condition of anonymity due to the confidential nature of the matter.
Market conditions suggest that FalconX’s IPO may not materialize until year-end, according to the insider. Previous reports from Decryptnews indicated that Cantor was one of the firms pitching FalconX for its potential listing.
Both FalconX and Cantor have opted not to comment on the situation.
Established in 2018, FalconX operates as a digital asset prime broker, offering services like trade execution, liquidity access, credit, and clearing, primarily for institutional clients, including hedge funds and asset managers. In June 2022, the firm successfully raised $150 million in a Series D funding round, achieving a valuation of $8 billion.
Entering 2026, crypto firms were optimistic about a resurgence in IPO activity following successful listings by companies like Circle (CRCL) and Bullish (BLSH), which had rekindled investor interest in digital asset firms in 2025. However, subsequent declines in market conditions, lower trading volumes, and underwhelming post-listing performances from new public entities like BitGo (BTGO) have dampened enthusiasm for further crypto IPOs.
As a result, several significant crypto players, including Payward, Consensys, Ledger, and asset manager Grayscale, have postponed their IPO ambitions, awaiting improved market conditions.
Nevertheless, some firms are still moving forward with their public offerings. Blockchain.com recently announced that it has confidentially filed for a U.S. IPO with the SEC. Additionally, Securitize has reached an agreement to merge with Cantor Equity Partners II, a Nasdaq-listed special purpose acquisition company, potentially positioning itself as one of the few publicly traded entities focused primarily on tokenized securities and real-world assets.