Crypto News: FalconX Cuts Jobs as Market Downturn Deepens

Key Insights

• Crypto news focused on FalconX cutting roughly 10% of employees.
• FalconX reportedly shifted its Singapore strategy toward crypto derivatives.
• The crypto market downturn pushed trading firms beyond spot services.

FalconX reportedly cut roughly 10% of its global workforce on Monday. The crypto news followed weaker trading activity across the broader crypto market.

Bloomberg reported that the digital asset prime broker employed about 350 people before the reductions. Its workforce operated across the U.S., United Kingdom, Singapore and Hong Kong.

The restructuring mattered because FalconX serves institutional investors rather than retail traders. Lower volumes can pressure spreads, financing activity and demand for prime brokerage services.

Crypto News: FalconX Cuts Staff and Reshapes Operations

Bloomberg reported that FalconX prepared for a prolonged cryptocurrency market downturn. The reported percentage suggested that around 35 positions faced removal, based on its previous headcount.

People familiar with the decision told Bloomberg that FalconX also reviewed its Singapore operations. The company planned to prioritize crypto derivatives trading within the Asian financial hub.

FalconX had not publicly confirmed the staff reduction by Monday evening. The company’s website continued advertising positions across Singapore, Hong Kong, London and several U.S. locations.

The workforce decision followed FalconX’s expansion through acquisitions during 2025. The firm completed its purchase of exchange-traded product provider 21shares on Nov. 20, 2025.

FalconX said the acquisition expanded its trading, asset management and market infrastructure businesses. The company also sought deeper coverage across Europe, Asia-Pacific and the U.S.

That expansion increased FalconX’s exposure to products beyond institutional trade execution. However, the layoffs indicated tighter cost controls as the crypto market weakened.

FalconX Reconsiders Its Singapore Licensing Strategy

Bloomberg reported that FalconX planned to withdraw an application with the Monetary Authority of Singapore. The company still intended to retain operations in Asia while expanding its European business.

FalconX’s regulatory disclosures showed that FalconX Golf Pte. Ltd. lacked registration or licensing from Singapore’s central bank. The disclosure, updated June 29, also said the entity did not require such authorization.

That distinction leaves the exact application and regulated activity unclear without further company disclosure. Bloomberg linked the withdrawal plan to FalconX’s increased emphasis on derivatives.

The reported pivot followed an earlier institutional partnership between FalconX and Standard Chartered. Both companies announced the arrangement in May 2025, starting with Singapore-based services.

Standard Chartered provided banking and foreign exchange infrastructure for FalconX’s institutional customers. The companies planned later expansion across Asia, the Middle East and the U.S.

FalconX’s Singapore position therefore remained commercially relevant despite the reported licensing withdrawal. Derivatives could provide stronger revenue opportunities than subdued spot activity.

Crypto News Reflects Pressure Across the Crypto Market

Bitcoin traded near $63,674 on Aug. 3, FactSet data cited by MarketWatch showed. The asset remained almost 50% below its October 2025 record above $126,000.

CoinGecko recorded Bitcoin’s Aug. 2 closing price at $63,504. Daily trading volume stood near $13.83 billion, compared with $29.78 billion one day earlier.

Lower prices and volumes have pressured businesses that rely heavily on transaction fees. Crypto.com, Gemini and other digital asset companies also reduced staffing during 2026.

Crypto.com cut about 12% of employees in March, Chief Executive Officer Kris Marszalek said. The reduction affected roughly 180 workers and accompanied broader artificial intelligence adoption.

These reductions showed how companies adjusted operating costs after institutional and retail activity slowed. The pressure also encouraged firms to develop derivatives, tokenized assets and recurring revenue products.

Crypto News Shows Trading Firms Expanding Beyond Spot Markets

CoinGecko estimated that crypto-linked traditional assets reached $6.59 billion on June 30. Their market value had increased from $1.41 billion on Jan. 1, 2025.

The research provider said the sector peaked at $7.50 billion in February. Tokenized precious metals initially drove growth before U.S. equity products gained market share.

CoinGecko separately reported $1.32 trillion in traditional asset perpetual volume during 2026. Monthly real-world asset perpetual volume reached $347.17 billion in May.

Coinbase’s second-quarter filing offered another measure of this business shift. Revenue excluding Bitcoin spot trading represented 88% of net revenue during the quarter.

The exchange reported $599.2 million in transaction revenue and $555.1 million from subscriptions and services. Total revenue reached $1.22 billion, while its net loss reached $359.5 million.

Coinbase also said prediction markets exceeded $100 million in annualized revenue. Its derivatives volumes remained broadly flat despite double-digit declines across the wider derivatives market.

FalconX’s next verifiable development will involve confirmation of its layoffs and Singapore plans. Further regulatory disclosures could clarify which license application the company reportedly intended to withdraw.

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