FalconX, a digital-asset prime brokerage that serves institutional clients, has cut roughly 10% of its global staff as it prepares for a prolonged downturn in cryptocurrency markets. The reductions, reported Monday and attributed to people familiar with the matter, affect an estimated 35 positions from a prior headcount of about 350 employees spread across the United States, the United Kingdom, Singapore and Hong Kong.

The company, which completed its acquisition of crypto exchange-traded product issuer 21Shares in November 2025, has not publicly confirmed the exact number of roles eliminated or the teams involved. Some accounts indicate the Singapore office absorbed a disproportionate share, with nearly half of local staff affected, including senior managers as well as employees in sales and accounting.

Strategic Shift in Singapore and Focus on Europe

Alongside the workforce reduction, FalconX is reshaping its approach in Singapore. The firm plans to withdraw its license application with the Monetary Authority of Singapore and concentrate operations there on crypto derivatives trading rather than pursuing broader prime-brokerage permissions. Derivatives activity does not require the same licensing pathway the company had originally sought after entering the market in 2023 with an over-the-counter derivatives offering aimed at Asia-Pacific institutional clients.

The change does not signal a full exit from the region. FalconX intends to maintain a presence in Asia while directing additional resources toward expansion of its regulated business in Europe. The adjustments form part of a wider effort to tighten costs and reallocate capital toward product lines viewed as more resilient during weaker market conditions.

Market Pressure and Industry Context

The moves come as falling cryptocurrency prices have reduced trading volumes and revenue across the sector. Bitcoin recently traded near $63,500 to $64,000, roughly 50% below its October 2025 peak above $126,000. Lower retail participation and softer institutional activity have prompted many firms to control expenses and prioritize derivatives, institutional services and tokenized products.

FalconX’s actions align with a broader pattern of headcount reductions. Other companies that have scaled back operations in recent months include Coinbase, Crypto.com, Gemini, BitGo and Luno, the latter of which cut about 20% of its global workforce. The Ethereum Foundation has also reduced staff as part of organizational changes.

FalconX operates primarily as a prime broker for hedge funds, asset managers and professional trading desks, offering trading, financing and risk-management services. In 2022 the firm raised capital at an $8 billion valuation. More recently it acquired Arbelos Markets in addition to 21Shares, which manages more than $12 billion across over 50 crypto exchange-traded products. The company has given no indication that the reported layoffs will affect those products or their investors.

Earlier Signals of Restructuring

Chief Executive Raghu Yarlagadda had previously pointed to a strategic pivot toward tokenized capital markets in comments made in July. The current market environment appears to have accelerated cost-control and refocusing measures. FalconX has not issued a detailed public statement on the restructuring, and inquiries for comment have not drawn an immediate response.

The combination of staff reductions, a narrower Singapore regulatory path and increased European emphasis marks a recalibration of priorities for the firm after a period of expansion through acquisitions. Further details on the timeline and operational impact of the changes remain limited pending any formal confirmation from the company.