FalconX, the digital asset prime brokerage that acquired crypto ETF issuer 21shares last November, has laid off approximately 10% of its global workforce as it braces for an extended cryptocurrency market downturn, Bloomberg reported on Monday.

As an institutional-focused prime brokerage providing execution, credit, and custody services to hedge funds, asset managers, and other large traders, FalconX's cost-cutting reflects pressure extending beyond retail-facing exchanges to the institutional trading infrastructure that underpins crypto markets.

According to people familiar with the matter, FalconX is also restructuring its Singapore operations. The company plans to concentrate on crypto derivatives trading and intends to withdraw its license application with the Monetary Authority of Singapore. Singapore has been one of Asia's most active crypto licensing jurisdictions, with MAS maintaining stringent capital and compliance requirements for digital asset firms. Despite the shift, FalconX aims to maintain its presence in Asia while simultaneously expanding its European business, where the EU's MiCA regulatory framework has created a more defined operating environment for crypto firms.

Prior to the layoffs, FalconX employed approximately 350 people across the United States, the United Kingdom, Singapore, and Hong Kong.

Cointelegraph reached out to a FalconX spokesperson for comment but had not received an immediate response.

The workforce reduction places FalconX among a growing roster of crypto firms scaling back operations during the market slump, joining exchanges such as Coinbase, Crypto.com, Luno, and Gemini, as well as infrastructure provider BitGo.

The Ethereum Foundation has also reduced 20% of its workforce as part of a strategic restructuring.

Crypto Exchanges Pivot Beyond Spot Trading

Crypto exchanges have faced mounting pressure as Bitcoin (BTC) and other digital assets pulled back from last year's highs, depressing trading volumes and retail participation. As Cointelegraph reported, some analysts believe Bitcoin has yet to reach a market bottom, suggesting the industry may continue to face headwinds.

Bitcoin was last trading below $64,000, roughly 50% below its October peak of approximately $126,000.

In response, many exchanges are diversifying beyond spot trading. FalconX's own decision to concentrate on derivatives trading mirrors this industry-wide shift. 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. Tokenized stocks and commodities have emerged as the leading drivers of this growth.

Coinbase's latest earnings highlight this shift. Although the company missed earnings expectations, it reported that 88% of its second-quarter net revenue came from businesses other than spot Bitcoin trading, with derivatives, prediction markets, and tokenized assets playing an increasingly significant role.

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