FalconX Unveils 24/7 OTC Options Platform for BTC, Ether, Solana
FalconX has launched a new electronic platform for crypto options, betting that institutional investors want the identical ability to trade derivatives around the clock that they already enjoy in spot markets.
The prime broker’s service, called Electronic Options, gives purchase-side firms a way to execute strategies on BTC, Ether, Solana and a handful of other tokens at any time, through either a user interface or direct API connection. The structure borrows from request-for-quote (RFQ) systems long used in FX and credit, with FalconX providing its own balance sheet as principal liquidity.
“The options market is the next major frontier in institutional crypto,” said Josh Lim, global co-head of markets at FalconX. “We built this platform to address the longstanding challenges of fragmented liquidity and lack of round-the-clock access. Clients get the identical execution quality our OTC desk is known for – now in a format designed for scale, distribution, and true 24/7 access.”
FalconX is hardly alone in viewing opportunity in extending trading hours. Nasdaq, Cboe and the New York Stock platform have all outlined plans this year to stretch US equities sessions well beyond the traditional 9:30 to 4pm window, while Blue Ocean Technologies has already built an overnight venue that plugs into brokers and order-management systems.
From FTX to prime brokerage growth
Founded in 2018 by Raghu Yarlagadda and Prabhakar Reddy, FalconX has become one of the better-capitalized players in institutional crypto. The firm raised $150 million at an $8 billion valuation in 2022, with backers including GIC, Thoma Bravo and Tiger Global. Unlike many peers, it survived the collapse of FTX with minimal losses, something it was quick to highlight to clients wary of counterparty risk.
The company has leaned into regulatory alignment as well. FalconX Bravo Inc. is provisionally registered with the Commodity Futures Trading Commission as a swap dealer, an unusual status in crypto that allows it to court banks and asset managers looking for derivatives coverage that meets compliance standards.
Earlier this year FalconX deepened its derivatives capabilities with the acquisition of Arbelos Markets, a boutique options trading shop co-founded by Lim. That deal brought in-house expertise in volatility trading, structured flows and risk management — precisely the areas Electronic Options now targets.
For purchase-side desks, the new service will not require ripping out existing infrastructure. Talos, the execution and order-management platform used by hedge funds and fintech brokers, has already integrated FalconX’s options product into its API.
“FalconX’s electronic options platform sets a new bar for institutional access to crypto derivatives, combining deep liquidity with best-in-class execution infrastructure,” said Anton Katz, chief executive of Talos. “This launch is a major step forward in scaling professional crypto markets.”
Crypto options volume has surged over the past 18 months, led by offshore venue Deribit, where notional turnover nahead doubled in 2024. CME has expanded its own BTC and Ether options suites, while the approval of spot BTC platform-traded funds in the US earlier this year has drawn in new hedgers and volatility traders.
Against that backdrop, FalconX is pitching Electronic Options as a bridge between traditional OTC workflows and the electronic access institutions now expect. The firm also views an edge in its global reach: in July, it expanded its prime brokerage offering into Latin America through partnerships with BTG Pactual and Mercado BTC.
The real test will be whether the purchase side wants to run options books on weekends and off-hours. But if equities continue creeping toward all-day sessions, crypto could once again be the laboratory where “always on” becomes the rule.
