Consolidation—that inevitable force that transforms fragmented markets into oligopolies—has claimed another victim in the digital asset space, as FalconX announced its acquisition of a majority stake in Monarq Asset Management, a multi-strategy investment firm that has undergone more name changes than a witness protection participant.
The target, formerly known as MNNC Group and originally tethered to the FTX-Alameda ecosystem through LedgerPrime, represents both opportunity and cautionary tale.
Under CEO Shiliang Tang—whose résumé spans Bank of America Merrill Lynch, Tower Research, and the aforementioned crypto graveyard—Monarq has navigated multiple market cycles and corporate restructurings since its 2017 inception, now managing several hundred million in assets. Tang’s transition from volatility trader at traditional financial institutions to crypto markets exemplifies the talent migration that has shaped the digital asset ecosystem.
FalconX’s strategic rationale appears surprisingly straightforward: expand beyond prime brokerage into asset management, targeting institutions seeking risk-adjusted returns without the operational headaches of direct crypto exposure.
FalconX seeks institutional clients who want crypto returns without crypto chaos—a sensible proposition in post-FTX reality.
The institutional digital asset prime broker plans to serve endowments, pensions, and family offices—entities that presumably learned valuable lessons from their peers’ spectacular FTX-related write-downs.
The acquisition structure favors control over partnership, with FalconX securing majority ownership of Monarq’s parent holding company rather than settling for minority influence.
Terms remain undisclosed, though one imagines the post-FTX pricing environment provided favorable negotiating conditions for acquirers with functioning balance sheets.
Monarq deploys quantitative, delta-neutral, and directional strategies across centralized and decentralized venues—a diversified approach that theoretically reduces single-point-of-failure risks that have plagued the industry.
Tang’s previous venture, Arbelos Markets, was also acquired by FalconX earlier in 2024, suggesting either exceptional founder-market fit or limited exit options for crypto-native firms.
FalconX CEO Raghu Yarlagadda and global head of revenue Austin Reid anticipate further acquisitions over the next 12-24 months, positioning the firm to capitalize on industry consolidation. Meanwhile, corporate adoption of digital assets continues accelerating, with companies like MicroStrategy demonstrating the potential rewards of aggressive Bitcoin accumulation strategies that yield billions in mark-to-market gains. The prime broker maintains global offices across Silicon Valley, New York, London, Hong Kong, Bengaluru, Singapore, and Valletta to support its expanding operations.
Whether this represents prescient strategy or opportunistic bottom-feeding depends largely on crypto’s next act—and whether institutional investors maintain their appetite for alternative investments that alternate between revolutionary potential and spectacular implosion with remarkable consistency.
The move fundamentally reflects maturation within digital asset markets, where survival increasingly requires scale, regulatory compliance, and institutional credibility.
