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Swyftx Acquires Caleb & Brown
Swyftx Acquires Caleb & Brown

Transaction Overview

On July 1st, 2025, Swyftx, one of the largest Australian cryptocurrency exchanges, announced a definitive agreement to acquire Caleb & Brown, a high-net-worth-focused crypto brokerage, for an undisclosed amount.

 

Target: Caleb & Brown

Caleb and Brown is a Melbourne-based, high net worth focused crypto brokerage that specializes in personalized trading services across the digital asset landscape. Caleb & Brown focuses on the relationship model used successfully across traditional  financial services – every client that comes onto their platform gets assigned a broker to assist them in executing trades  and handling all customer service needs. Caleb and Brown’s core services include 1) Brokerage Services, which provide personalized 24/7 trading support for 250+ digital assets, 2) an OTC Desk, which provides high volume trading solutions with deep liquidity and competitive pricing, 3) the Caleb and Brown Asset Management, an actively managed crypto asset fund for accredited investor, 4) crypto custody. 

 

The business has more than AUD $2 billion of digital assets under custody and was founded by Rupert Hackett and Dr. Prash Puspanathan in 2016. C&B is led by CEO Jackson Zeng and has 64 team members across both Australia and the US. Caleb & Brown has not raised any outside capital. 

 

Architect Partners’ Observations

Architect Partners acted as the exclusive financial advisor to Caleb & Brown. 

 

Swyftx’s acquisition of Caleb & Brown marks the largest acquisition targeting high net worth crypto investors. It also reflects two important shifts in the evolution of crypto exchanges, particularly within the ANZ region.

 

First, high-net-worth client service is becoming a strategic differentiator. Exchanges are beginning to recognize that personalized brokerage and deep client relationships offer a competitive advantage while greatly reducing attrition. This is a model that high-net-worth clients are accustomed to in their financial lives. Caleb & Brown’s approach, which assigns a dedicated broker to every client, stands apart from the high-volume, low-touch models that dominate the market. Swyftx gains access not only to clients but also to an established business model that emphasizes trust, service, and retention in a way few crypto exchanges have pursued.

 

Second, this is a milestone moment for ANZ crypto M&A. While there have been many plays for global expansion by exchanges, this is the first of its kind in Australia moving into the US, signaling that the region is entering a more active phase of market maturity. 

 

We believe this transaction will serve as a catalyst for further strategic activity to expand globally and to augment services as companies seek differentiation in both product and customer segments.

 

Strategic Rationale

Swyftx is acquiring Caleb & Brown to expand into the United States via C&B’s regulatory framework, and to acquire the relationship model inherently required with a higher-tier customer base. This acquisition will grant Swyftx entry into the U.S. 12 to 24 months faster than otherwise possible organically. Furthermore, the acquisition diversifies Swyftx’s primarily retail client base to include 25k+ high net worth individuals in numerous countries. 

 

“Caleb & Brown has quietly established one of the most impressive brokerage offerings in the world, with a heavily differentiated private client service. We see enormous growth potential.” – Jason Titman

Uncategorized

FalconX Acquires Arbelos Markets for an Undisclosed Amount

Michael Klena
January 3rd, 2025
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Transaction Overview

On January 3, 2025, FalconX, a crypto prime brokerage firm, announced its acquisition of Arbelos Markets, a crypto-focused trading firm that provides principal liquidity across the crypto derivatives market, for an undisclosed valuation

 

Target: Arbelos Market

Arbelos Markets, established in 2023, specializes in providing liquidity solutions for cryptocurrency derivatives markets. The company offers a range of services, including spot trading, options, and futures contracts. Additionally, it operates a bilateral trading platform and provides advisory services focused on cryptocurrency hedging and yield optimization strategies.

 

Since its inception, Arbelos Markets has been delivering derivatives trading across both exchange-traded and bilateral markets. The firm has consistently maintained its position as a global liquidity provider for large options blocks by facilitating access to highly liquid trading opportunities across crypto-native platforms, traditional financial venues, and on-chain protocols.

 

Founded in 2023 by Joshua Lim and Shiliang Tang and headquartered in the British Virgin Islands, the company previously raised $56 million in seed funding, with $28 million coming from debt. Dragonfly Capital led the round, with participation from FalconX, Paxos, Deribit, StarkWare, Immutable, Chorus One, P2 Ventures, Circle Ventures, Room40 Ventures, Selini Capital, and Breed VC.

 

Buyer: FalconX

FalconX is a digital asset prime brokerage providing trading, financing, and technology solutions to institutional clients. Its offerings include: 1) FalconX 360, an end-to-end platform supporting the trade lifecycle, 2) derivatives products, 3) financing solutions, and 4) FX services for fiat and crypto-fiat pairs. 

 

FalconX Bravo, an affiliate of FalconX, became the first CFTC-registered swap dealer focused exclusively on cryptocurrency derivatives.

 

As of July 1, 2024, FalconX had executed over $1.5 trillion in trading volume, served more than 600 institutional clients, and provided access to 400+ tokens. In early 2024, the company facilitated over 30% of total BTC creation purchases for ETF sponsors on their inaugural trading day.

 

Founded in 2018 by Prabhakar Reddy and Raghu Yarlagadda and headquartered in San Mateo, California, FalconX employs over 380 people across offices in New York City, San Francisco, London, Malta, Bangalore, Hong Kong, and Singapore. The company has raised $477 million across eight funding rounds, with backing from B Capital, Altimeter Capital, Accel, Tiger Global, and American Express Ventures, among others. FalconX was last valued at $8 billion in 2022.

 

Transaction Parameters

FalconX closed on the acquisition of Arbelos Market for an undisclosed amount through a mix of cash and stock.

 

Previous comparable transactions include: Stillman Digital | DeFi Technologies, Flovtec | STS Digital, CTF Capital | Borderless Capital, FairX | Coinbase, ErisX | CBOE

 

Strategic Rationale

This acquisition strengthens FalconX’s position as a leading player in institutional trading facilitation. By acquiring a block-trading and OTC derivatives market liquidity provider, FalconX is expanding the range of services available to its existing clients while bringing more of the trading cycle in-house. Moving operations in-house not only allows FalconX to capture an increased share of trade revenues but also ensures that client needs are consistently met.

 

Through this acquisition, FalconX enhances its OTC offerings, complementing its regulated services. The race for leadership in derivatives is intensifying, with several players aggressively expanding in this product segment. FalconX is broadening its product suite to position itself among the leading contenders in the market.

 

Architect Partners’ Observations

This is a logical deal, and we expect more of these to come due to several factors. 

 

Derivatives are a higher-margin product than spot trading, so firms will look to expand their offerings as trading fees are compressed. A similar pattern occurred in U.S. equity trading once it became commoditized in the early 2000s—firms pushed to expand their higher-margin derivatives offerings, often through acquisitions.

 

There is more supply as several newly launched crypto derivatives firms, like Arbelos, D2X, and One Trading, have entered the market. It’s a unique point in time where there is no dominant player preventing others from launching and finding traction.

 

There is growing demand as regulatory changes (e.g., ETF approvals) and (optimistically) upcoming crypto-friendly frameworks have increased institutional trading. Increasing demand means larger firms can now act more aggressively to acquire and feel confident they will not fall into the crosshairs of regulators while expanding their product offerings.

 

There are precedents. Coinbase bought FairX in 2022 (now Coinbase Derivatives), and CBOE acquired ErisX in 2021 (which they wrote down). Timing was a bit early on those deals due to the previously unseen regulatory changes, but we are now hearing that the timing looks more favorable.

 

Sources 

PitchBook, PR Newswire, FalconX