Digital Asset Broker FalconX Slashes Staff by 10% as Crypto Winter Persists: Report
Bloomberg reports that the prime brokerage firm is restructuring its Singapore operations and pulling back its license application with local regulators as cryptocurrency firms continue cost-cutting measures.
Digital asset prime brokerage firm FalconX, which completed the acquisition of crypto ETF provider 21shares in November of last year, has eliminated approximately 10% of its employees worldwide in preparation for an extended bearish phase in cryptocurrency markets, according to a Monday report from Bloomberg.
Sources with knowledge of the situation told Bloomberg that FalconX is simultaneously restructuring its Singapore operations by concentrating on derivatives trading for cryptocurrencies and intends to pull its license application that was submitted to the Monetary Authority of Singapore. Despite these changes, the firm plans to continue operating in Asia while simultaneously growing its European market presence.
Prior to these workforce reductions, FalconX maintained a staff of approximately 350 employees distributed across locations in the United States, the United Kingdom, Singapore and Hong Kong.
A FalconX spokesperson was contacted by Cointelegraph for additional commentary but had not provided a response at the time of publication.
This reported staff reduction places FalconX among an expanding roster of cryptocurrency firms that have scaled down their operations throughout the current market downturn, a list that includes major exchanges such as Coinbase, Crypto.com, Luno and Gemini, as well as infrastructure service provider BitGo.
Crypto exchanges pivot beyond spot trading
Cryptocurrency exchanges have faced mounting challenges as Bitcoin (BTC) along with other digital assets have declined from the peak valuations achieved last year, resulting in diminished trading volumes and reduced retail investor engagement. According to previous Cointelegraph coverage, certain market analysts maintain that Bitcoin has not yet found its market bottom, implying that the sector may continue experiencing challenging conditions.
Bitcoin's most recent trading price stood below $64,000, representing approximately 50% below its October pinnacle that exceeded $126,000.
To counteract these challenges, numerous exchanges have been diversifying their offerings beyond traditional spot trading. A recently published CoinGecko report indicates that the "crypto TradFi" industry segment, encompassing tokenized assets, derivatives and additional traditional financial instruments, experienced fivefold expansion to reach $6.6 billion during the period spanning January 2025 through June 2026.
The most recent earnings report from Coinbase exemplifies this strategic transformation. While the company fell short of earnings projections, it disclosed that 88% of its second-quarter net revenue originated from business operations outside of spot Bitcoin trading, with derivatives products, prediction markets and tokenized assets contributing increasingly significant portions.