FalconX Trims 10% of Staff, Pivots to Derivatives as Crypto Winter Drags On ❄️

FalconX, the digital asset prime brokerage that acquired crypto ETF issuer 21Shares last November, has laid off roughly 10% of its global workforce as it braces for a prolonged downturn in the cryptocurrency market, according to a Bloomberg report on Monday. People familiar with the matter told the outlet the company is also reshaping its strategy in Singapore by focusing on crypto derivatives trading and plans to withdraw its license application with the Monetary Authority of Singapore. FalconX intends to keep a presence in Asia while expanding its European business.

Before the layoffs, FalconX employed about 350 people across the United States, the United Kingdom, Singapore and Hong Kong. Cointelegraph reached out to a FalconX spokesperson for comment but did not receive an immediate response. The workforce reduction adds FalconX to a growing list of crypto firms scaling back operations during the market slump, alongside exchanges Coinbase, Crypto.com, Luno and Gemini, and infrastructure provider BitGo.

Crypto exchanges have faced mounting pressure as Bitcoin ($BTC) and other digital assets retreated from last year's highs, dragging down trading volumes and retail participation. Bitcoin was last trading below $64,000, roughly 50% below its October peak above $126,000. Some analysts believe Bitcoin has yet to find a market bottom, suggesting further headwinds for the sector.

In response, exchanges are expanding beyond spot trading. According to a recent CoinGecko report, the "crypto TradFi" sector, which includes tokenized assets, derivatives and other traditional financial products, grew fivefold to $6.6 billion between January 2025 and June 2026, with tokenized stocks and commodities leading the charge. Coinbase's latest earnings underscore that shift: although the company missed earnings expectations, it reported that 88% of second-quarter net revenue came from businesses other than spot Bitcoin trading, with derivatives, prediction markets and tokenized assets playing an increasingly important role.