Quick take:

  • Shiliang Tang the CEO and managing director of Monarq previously worked at Bank of America Merril Lynch and UBA as a volatility trader before pivoting to crypto in 2017.

  • This investment follows FalconX CEO Raghu Yarlagadda’s comments in October predicting a wave of consolidation in the crypto space.

  • He said his company would be hunting for acquisition targets, which it fulfilled by acquiring derivative startup Arbelos Markets in January.

Digital prime brokerage platform FalconX has announced the acquisition of a majority stake in the parent company of multi-strategy hedge fund Monarq Asset Management. Terms of the transactions were not disclosed, but FalconX sees it as part of a border strategy of expanding its asset management services.

According to Austin Reid, global head of revenue and business at FalconX, his company wants to seize the opportunity to expand its institutional client base beyond hedge funds, proprietary trading firms and asset managers.

“Those include endowments, pensions, more family offices, people that are basically looking for more of an asset management-like solution to manage their assets within crypto,” Bloomberg reported, pointing to an interview statement by Reid.

Formerly known as MNNC Group, Monarq was founded by a group behind LedgerPrime, a quantitative digital asset investment firm based in Miami, Florida. Shiliang Tang its CEO and managing director previously worked at Bank of America Merril Lynch and UBA as a volatility trader before pivoting to crypto in 2017.

“With FalconX’s strategic support, we are well positioned to scale our proprietary quantitative models, grow our team of portfolio managers and technologists, and bring institutional-grade asset management to a broader set of investors,” Tang said.

This is not FalconX’s first major move in the space. I January, the San Marcos California-based company acquired derivatives startup Arbelos Markets, in line with a statement FalconX CEO Raghu Yarlagadda, had made in October.

“Our perspective is that we are going to go through a period of consolidation in this space and especially in private markets in digital assets,” Reid said, adding that FlaconX is actively engaged with potential acquisition targets, as it looks to bring more companies into FalconX.

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The post FalconX Takes Majority Stake in Multi-Strategy Hedge Fund Monarq Asset Management appeared first on NFTgators .