FalconX, the California-based cryptocurrency exchange, has raised $50 million from Tiger Global and B Capital Group by highlighting once again that digital assets are becoming more mainstream.
It has been reported that FalconX did not specify how the funds would be deployed, but if it’s anything like previous fundraisers, the money will likely go towards business development.
However, FalconX raised $17 million in May 2020 to finance several growth initiatives, including adding new infrastructure and expanding its product offerings. FalconX stated that it uses data science to provide a more competitive trading environment for professional investors.
Big names continue to back FalconX, which seems to be quickly becoming one of the preferred exchanges for institutional investors https://t.co/i3n9EAFc8n — Cointelegraph (@Cointelegraph) March 11, 2021
The report said that in addition to Tiger Global and B Capital Group, FalconX is backed by major players like Accel, Coinbase Ventures, and Avon Ventures, a venture capital firm with ties to Fidelity Investments through FMR LLC.
Scott Shleifer, a partner at Tiger Capital, described FalconX as a potential “industry leader in the institutional cryptocurrency market.” The exchange’s growth over the past year seems to indicate that it is headed in that direction.
FalconX claims that its net revenues have grown 46 times over the past 12 months, driven by higher institutional demand for cryptocurrency.
Thus, the arrival of institutional investors was one of crypto’s biggest stories of 2020. That trend appears to be intensifying as Wall Street finds new ways to offer exposure to digital assets.