Cantor Woos FalconX: Wall Street's Crypto Wingman Loads Up the IPO Lambo

Wall Street's very own crypto hype man, Cantor Fitzgerald, is reportedly among the banking suitors lining up to pitch FalconX for its potential IPO, per two anonymous sources who clearly love a good backroom deal. The crypto prime broker has been entertaining these preliminary chats with possible advisors but hasn't officially put a ring on any banker yet—keeping its options open in true degen fashion.

In a shocking turn of events that surprises absolutely no one, both FalconX and Cantor declined to comment. This is the standard corporate mating dance, where banks flex their spreadsheets and promise the moon to convince a company they can pump that valuation and navigate the regulatory gauntlet.

The IPO rumors have been swirling since last June, when Decrypt first reported FalconX's informal flirting with the public markets. CEO Raghu Yarlagadda later confirmed the firm was, indeed, considering taking the plunge. Of course, the crypto weather has turned since then, with Bitcoin cooling off from its October high of $126,000 to a more modest $70,000—a classic case of "buy the rumor, sell the news" for the entire asset class.

Adding to the chilly IPO climate, Kraken recently decided to put its own public listing plans in the freezer. So far this year, the only crypto-native firm brave enough to list has been custodian BitGo, whose shares are down about 40% since its debut—a performance that would make even the most diamond-handed ape wince.

Despite the market acting like it's still in crypto winter, firms like FalconX and custody provider Copper are still whispering sweet nothings about IPOs. Last year was the season for exchanges to go public; now, the smart money is betting 2026 might finally be the year for the back-office infrastructure players to get their moment in the sun—or get rekt trying.

Cantor and FalconX aren't exactly strangers; they've already been financially entangled. Back in 2025, Cantor launched a massive $2 billion bitcoin-backed financing program and promptly extended an initial credit line of over $100 million to FalconX, letting the prime broker borrow against its bitcoin stash—because why sell when you can just HODL and leverage up?

If Cantor successfully lands the coveted IPO mandate, you can bet that pre-existing "special relationship" will be a major factor. For the uninitiated, FalconX is a U.S.-based crypto prime broker catering to the big leagues: hedge funds and asset managers who prefer not to touch the spot market themselves. Founded in the crypto dark ages of 2018, it raised $150 million in a June 2022 Series D, hitting a lofty $8 billion valuation.

FalconX hasn't been sitting idle; it's been on an acquisition spree to bulk up for the big leagues. In 2025 alone, it scooped up Arbelos Markets, took a majority stake in Monarq Asset Management, and inked a deal for ETP issuer 21Shares—assembling its empire one check at a time.

Not to be outdone, Cantor has been aggressively expanding its own crypto resume beyond just meme-stock fame. The firm manages Tether's infamous Treasury reserves and has backed a slew of crypto ventures. Founded in 1945, this Wall Street old-timer is a heavyweight in fixed-income and investment banking, proving that even boomer institutions can learn to ape in.