FalconX cuts 10% of workforce as crypto firms tighten belts

FalconX, a digital asset prime broker that bought crypto ETF issuer 21shares last November, has laid off roughly 10% of its global staff, Bloomberg reported Monday. The cuts come as the company rethinks its Singapore strategy – it plans to withdraw its license application with the Monetary Authority of Singapore and focus on crypto derivatives trading instead, people familiar with the matter told Bloomberg.

The firm will keep a presence in Asia while expanding its European business, the report said. Before the layoffs, FalconX had about 350 employees across the United States, the United Kingdom, Singapore and Hong Kong.

The reduction puts FalconX alongside other crypto firms trimming operations during the market slump. Exchange operators Coinbase, Crypto.com, Luno and Gemini have also scaled back. BitGo, a custody provider, did the same.

Bitcoin last changed hands below $64,000, roughly 50% below its October peak above $126,000. The retreat from those highs has squeezed trading volumes and reduced retail participation, according to several exchange disclosures.

Some analysts see more downside. As Cointelegraph reported, a number of analysts believe Bitcoin has not yet found a market bottom, which would mean continued pressure on firms tied to trading volumes.

In response, many exchanges are pushing beyond spot trading. A recent report from CoinGecko said the “crypto TradFi” sector – tokenized assets, derivatives and other traditional financial products – grew fivefold to $6.6 billion between January 2025 and June 2026. Tokenized stocks and commodities drove much of that growth, CoinGecko said.

Coinbase’s latest earnings illustrate the shift. The company missed earnings expectations, but it reported that 88% of second-quarter net revenue came from businesses other than spot Bitcoin trading. Derivatives, prediction markets and tokenized assets played an increasingly important role, Coinbase said.

For FalconX, the pivot to derivatives in Singapore and expansion in Europe follows a similar playbook. The firm had pursued a full Singapore license through its acquisition of 21shares, but the withdrawn application suggests it sees more opportunity in derivatives and in the European market. A FalconX spokesperson did not immediately respond to a request for comment.

The broader crypto market analysis shows that prime brokers and exchanges are adapting to lower trading volumes by diversifying revenue streams. The question is whether those new streams will be enough to sustain the industry if spot trading continues to shrink.