Jack Kubinec

The centralized finance sector received less than 7% of crypto venture funds every month from July to October. This is a far cry from 2021, where it would receive greater than half of all venture capital, according to data compiled by FalconX.&nbsp;



As their share of venture funds stagnates, centralized exchanges are increasingly adopting features common to decentralized finance (DeFi). Industry watchers were split on whether CeFi’s pivot to DeFi stemmed from a need for liquidity or from real interest in DeFi technology.&nbsp;



David Lawant, head of research at crypto prime brokerage FalconX, said the firm’s data appears to show a decline over time in CeFi fundraising relative to DeFi. He noted however that the funding slide could be a result of CeFi firms having acquired sufficient runway from venture rounds in 2021 and 2022.



But CeFi’s funding lull also comes alongside revenue disappointment.



On centralized exchanges specifically, trading has <a href="https://www.theblock.co/data/crypto-markets/spot/cryptocurrency-exchange-volume-monthly">compressed</a> greatly since 2021. The share of trading happening on decentralized exchanges has <a href="https://x.com/carametlas/status/1724927256504496627?s=20">increased</a> relative to centralized offerings over time. Riyad Carey, analyst at crypto research firm Kaiko, said he grasped the gravity of the CeFi decline when looking at minute by minute volumes for bitcoin.&nbsp;



“It was pretty striking how fewer exchanges now have significant volumes when fees on volume are supposed to be an exchange’s main source of revenue,” Carey said.



As trading fees become less lucrative, centralized platforms are racing to build the “all-in-one crypto app,” Carey said, citing Coinbase as a prominent example. <a href="https://blockworks.co/news/coinbase-l2-base-mainnet">Coinbase debuted its Base layer-2</a> over the summer and <a href="https://blockworks.co/news/coinbase-identity-verification-kyc">launched an on-chain verification platform</a> last week.&nbsp;



OKX and Kraken are following Coinbase in developing Ethereum layer-2s while Binance released a custodial wallet, signaling a burgeoning trend among centralized exchanges, <a href="https://blockworks.co/news/layer-2-crypto-exchanges-coinbase-kraken">Blockworks previously reported</a>.&nbsp;



Read more: <a href="https://blockworks.co/news/layer-2-crypto-exchanges-coinbase-kraken">Will layer-2s become table stakes for exchanges?</a>



Carey said the DeFi ventures stem largely from a search for liquidity on the part of CeFi platforms, but industry participants Blockworks spoke to had varying takes on the reasons behind the pivot.&nbsp;



Brian Rudick, senior strategist at crypto financial service firm GSR, said one cause for CeFi’s interest in DeFi products could be a desire on the part of centralized firms to “introduce more hooks” and cross-selling. He noted that users of a centralized exchange’s layer-2 might also make use of its wallet offering, for example.



For Banafsheh Fathieh, co-founder of crypto venture fund Lightspeed Faction, CeFi helped establish crypto as an asset class, while DeFi centers on crypto’s place as a technological trend.&nbsp;



“The core of the innovation in my view is probably going to continue to be on the DeFi side, so it’s not surprising I think that a lot of the CeFi players are increasingly looking to do more sort of on-chain,” Fathieh said.



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CeFi is making the DeFi jump. Will it work?

Sebastian Sinclair

Anticipating a crowded macroeconomic calendar, the crypto market has taken a slight dip — failing to maintain key resistance levels and resembling a trend from a bygone era.



Major blue-chip assets bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>) and ether (<a href="https://blockworks.co/price/eth" target="_blank" rel="noreferrer noopener">ETH</a>), slid under their respective $30,000 and $2,000 thresholds on Monday, marking a 2.9% drop in total crypto market capitalization which now stands at $1.2 trillion, data shows.&nbsp;



BTC and ETH were little changed over the last 24 hours, both down 0.3% to around $29,200 and $1,850. Both assets fell 3% and 2% respectively earlier in the week, their steepest losses in the last 10 days, data shows.



The current <a href="https://blockworks.co/news/low-bitcoin-market-activity">market mood</a> resembles that of 2019, with the industry buzzing over potential developments while the broader markets gift the industry little attention, crypto prime brokerage FalconX wrote in its weekly newsletter.&nbsp;



Trading volumes of BTC and ETH are also now at near-yearly lows, it said.



<h2 class="wp-block-heading">Some smaller cap assets buck trend</h2>



Despite the general pullback, other cryptos are showing promise, potentially linked to increased interest following the recent <a href="https://blockworks.co/news/judge-rules-ripple-xrp-not-security">Ripple vs. SEC ruling</a> and Blackrock’s refreshed spot <a href="https://blockworks.co/news/blackrock-bitcoin-etf-wolf">bitcoin ETF</a>.



Chainlink (<a href="https://blockworks.co/price/link">LINK</a>) has enjoyed <a href="https://blockworks.co/price/link" target="_blank" rel="noreferrer noopener">double-digit returns</a> on the month due to the successful deployment of its Cross-Chain Interoperability Protocol, enabling token and message exchanges across <a href="https://blockworks.co/news/chainlink-ccip-launch">multiple chains</a>.&nbsp;



The asset was up 0.8% on the day to $7.49, and up about 8.5% on the week. It&#8217;s still down more than 85% from its all-time high witnessed in May 2021 of $54.40.



Dogecoin (DOGE), the popular memecoin, has also outperformed other assets, with its market cap rising to a three-month-high above $11 billion on Monday.&nbsp;



The crypto, up 15% on the week, has been particularly sensitive to speculation swirling around potential payment integrations on Twitter, now rebranded as X. While up a further 2% on the day, DOGE remains more than 90% down from its all-time high of $0.76, established in May 2021 and currently trades at $0.08.



While there have been some outsized gains for certain assets, the general sentiment is calm, analysts say.



“The question this week is whether the macro calendar that will heat up starting tomorrow will be able to stir up crypto’s calmness,” FalconX wrote.



Market observers now anticipate the upcoming macroeconomic events could disrupt the complacency of the crypto market.&nbsp;



The Federal Open Market Committee (FOMC) decision could lead to a widely expected 25 basis point hike — seen as a means of moving the needle in a given direction for digital assets depending on the Fed’s hawkish or dovish stance at the time.



<h2 class="wp-block-heading">Macro lens</h2>



Other macroeconomic factors include the impact of major oil <a href="https://www.reuters.com/business/energy/oil-prices-steady-rate-hike-fears-offset-signs-tightening-supply-2023-07-07/" target="_blank" rel="noreferrer noopener">price increases</a>, upcoming <a href="https://www.ft.com/content/dd5f810c-c0c6-41d7-add7-2fec401fa958" target="_blank" rel="noreferrer noopener">Q2 GDP figures</a> from the US and the expected interest rate hike from the <a href="https://www.reuters.com/markets/europe/hike-then-five-questions-ecb-2023-07-24/" target="_blank" rel="noreferrer noopener">European Central Bank</a>.&nbsp;



While the correlation between digital assets and the wider markets has <a href="https://blockworks.co/news/stocks-and-crypto-correlation-shows-signs-of-weakening">dwindled</a> in recent months, analysts still believe developments globally and their impact are not to be ignored.



Crypto volatility continues to decrease, both in <a href="https://blockworks.co/news/bitcoin-volatility-low-fomc-meeting">realized and implied terms</a>, potentially presenting a buying opportunity for investors wanting to shield themselves from the broader market on possible spikes tied to the busy macro week, FalconX noted.



Jason Pagoulatos, markets associate at Delphi Digital told Blockworks due to overexuberance over June/July’s bullish fundamentals, the unwinding of capital wasn’t to be ruled out.&nbsp;



“Given how equities are extended here and how BTC has performed with some very good news at its back, seems to me the path of least resistance is likely continuation to the downside,” he said.&nbsp;



The analyst pointed to a target range of around $28,000 to $27,000 as an “attractive level for buyers.”



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Bitcoin, ether resembling 2019’s market mood: FalconX

Crypto prime brokerage FalconX has begun offering a suite of derivatives contracts based on the same index as Blackrock’s bitcoin ETF, in a bid to foster “trust among institutional investors.”



FalconX said its products encompass swaps, options and non-deliverable forwards, intended to provide exposure settled against reference rates provided by Financial Conduct Authority-regulated crypto index provider CF Benchmarks, according to a statement.&nbsp;



The companies said they were responding to heightened demand for more transparent financial instruments within the digital assets sector by providing an assortment of derivatives contracts, based on consistent benchmarks.



“Derivatives benchmarked against resilient and regulated indices are the primary route institutions take to gain exposure to the crypto asset class,” Sui Chung, CEO of CF Benchmarks said.



Providing exposure to bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>), the contracts will be underpinned by the CME CF Bitcoin Reference Rate (BRR) for settlement while exposure to ether (<a href="https://blockworks.co/price/eth" target="_blank" rel="noreferrer noopener">ETH</a>) will be settled against the CME CF Ether-Dollar Reference Rate.&nbsp;



The BRR, like ether’s, aggregates the trade flow of major bitcoin spot exchanges during a specific calculation window into a once-a-day <a href="https://www.cfbenchmarks.com/data/indices/BRR" target="_blank" rel="noreferrer noopener">reference rate</a>.



Established in 2016, BRR serves as the settling index for futures contracts put forth by both the CME Group and Crypto Facilities MTF. It&#8217;s also used to <a href="https://www.cfbenchmarks.com/data/indices/BRR" target="_blank" rel="noreferrer noopener">determine</a> the value of investment products from leading financial firms like WisdomTree Europe.



The contracts offered by FalconX match up with the same set of indexes as those proposed for <a href="https://blockworks.co/news/blackrock-bitcoin-etf-wolf">BlackRock&#8217;s prospective spot bitcoin ETF</a> in the US, <a href="https://www.sec.gov/Archives/edgar/data/1980994/000143774923017574/bit20230608_s1.htm" target="_blank" rel="noreferrer noopener">filed</a> last month.&nbsp;



The market is rife with speculation over whether the world’s largest asset manager can crack break through the regulatory red tape to get such a product approved in the US, as it has been <a href="https://blockworks.co/news/ontario-securities-regulator-approves-first-bitcoin-etf">in Canada</a> and <a href="https://blockworks.co/news/wisdomtree-launches-spot-etps-in-europe">the European Union</a> since 2021. If so, further <a href="https://blockworks.co/news/approved-spot-bitcoin-etf-launch-size">institutional demand</a> is expected to follow, providing an additional boost to <a href="https://blockworks.co/news/blackrock-bitcoin-etf-grayscale">regulated offerings</a> at a time when larger players have begun <a href="https://blockworks.co/news/institutions-turning-pro-crypto">asking for it</a>.



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FalconX leverages BlackRock’s index provider for crypto derivatives

Ben Strack

A longtime product executive who has spent time at Robinhood, Apple, Amazon, Microsoft and American Express is moving into the crypto space.



Digital assets platform FalconX revealed Tuesday it has hired <a href="https://www.linkedin.com/in/cetinok/" target="_blank" rel="noreferrer noopener">Baris Cetinok</a> as its chief product officer. 



Cetinok most recently led product teams for Robinhood&#8217;s brokerage, trading and clearing platforms. Before that, he served in various senior roles for Apple, including senior director of product management for Apple Wallet, Apple Pay and iCloud.&nbsp;



&#8220;Post-FTX fallout, there&#8217;s a growing need among institutional investors to improve risk management and trade more efficiently,&#8221; Cetinok said in a statement. &#8220;It&#8217;s an honor to join a company creating dependable infrastructure that facilitates global investor access to crypto while enabling the tokenization of traditional assets.&#8221;



Polygon Labs added <a href="https://www.linkedin.com/in/rebecca-rettig-8b90a284/" target="_blank" rel="noreferrer noopener">Rebecca Rettig</a> as its first chief policy officer as the blockchain platform eyes institutional growth.



Rettig was formerly a board member at Silvergate Bank and chief legal and policy officer at Aave Companies. She also previously represented blockchain and crypto clients as a partner at Manatt, Phelps &amp; Phillips.



“The end of 2022 was rough for crypto,” Rettig said in a Thursday tweet. “I did some soul searching about the industry [and] how to build a future I believe in. I kept coming back to the same idea: the most important thing right now is getting crypto policy right.”



She added that Polygon Labs is set to advocate for base-layer protection, DeFi, NFTs, Web3 gaming and innovative apps growing the Web3 world, as well as “sensible” regulation around front-ends, wallets and bridges.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">11/ The next few years will determine the fate of web3. They won’t be easy, but we aren’t going anywhere. No paradigm-shifting tech has seamlessly changed the world. I’ve rolled up my sleeves, contemplated drinking coffee &amp; I am, as I have been for years, here for the mission.💪&mdash; Rebecca Rettig (@RebeccaRettig1) <a href="https://twitter.com/RebeccaRettig1/status/1623672097774923778?ref_src=twsrc%5Etfw">February 9, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Rettig is also set to help develop legal frameworks for the Polygon-based tokenization of real-world assets, according to the company.&nbsp;



An executive at banking titan State Street told Blockworks last year that using <a href="https://blockworks.co/news/state-street-sees-significant-opportunity-in-tokenization">distributed ledger technology to tokenize funds and private assets</a> would be a major focus in 2023. Larry Fink, CEO of asset management giant BlackRock, said in November he believes tokenization of securities is “<a href="https://blockworks.co/news/blackrock-ceo-still-in-crypto-for-the-tech-despite-ftx-scandal">the next generation for markets</a>.”



Venture capital firm a16z promoted <a href="https://www.linkedin.com/in/eddy-lazzarin-66059749/" target="_blank" rel="noreferrer noopener">Eddy Lazzarin</a> to chief technology officer for its crypto fund. 



A firm that invests in crypto and Web3 startups, a16z crypto has raised more than $7.6 billion for its four funds.



Lazzarin joined a16z as a data scientist in 2019 and became the company’s head of engineering about two years later. He is now set to oversee the research and security unit in addition to the engineering and data science division he had already been leading.&nbsp;&nbsp;



“Under his leadership, a16z crypto’s engineers have been continuously adding to our suite of open-source tools that benefit the entire ecosystem — including Helios, Halmos, privacy-protecting airdrops, a starter pack for NFT analysis and more to come,” a16z partner Chris Dixon said in <a href="https://twitter.com/cdixon/status/1623397398201634821" target="_blank" rel="noreferrer noopener">a tweet thread</a> Wednesday.



Hong Kong-based Web3 company Artifact Labs appointed <a href="https://www.linkedin.com/in/phillip-pon-89666a2/" target="_blank" rel="noreferrer noopener">Phillip Pon</a> as CEO. He replaces founder Gary Liu, who moves onto the company&#8217;s board as its director.



The company offers advisory services, product development, blockchain engineering and community management for entities looking to launch NFT projects.



Pon was previously the chief operating officer for digital asset company BC Technology Group and president of crypto exchange OSL. He was also chief operating officer of energy services company Lumenix and a longtime senior executive at financial services firm Gerson Lehrman Group.



What other crypto hiring news has Blockworks already covered this week?



Swiss crypto-focused bank SEBA hired a former JPMorgan banker to head its Asia Pacific division.



See: <a href="https://blockworks.co/news/ex-jpmorgan-banker-hired-as-swiss-crypto-banks-apac-head">Ex-JPMorgan Banker Hired as Swiss Crypto Bank’s APAC Head</a>



<a href="https://www.linkedin.com/in/amy-yu-b94862168/" target="_blank" rel="noreferrer noopener">Amy Yu</a> previously worked within JPMorgan’s prime brokerage services division for six years and also formerly worked at traditional finance giant UBS and Nomura. Yu jumped into crypto in 2018 by joining BitMEX to develop services for institutional clients. She then became head of sales for the Asia Pacific region at Genesis, which <a href="https://blockworks.co/news/genesis-in-chapter-11-wont-insulate-silbert-winklevoss-says" target="_blank" rel="noreferrer noopener">filed for bankruptcy</a> in January.



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Latest in Crypto Hiring: Robinhood Exec Jumps Ship to Digital Asset Platform

David Canellis

Institutional crypto trading platform FalconX won&#8217;t route transfers through crypto bank Silvergate out of an “abundance of caution” — a sign the ecosystem is eager to avoid risk wherever possible.



In a note recently sent to users, FalconX said that effectively immediately, “we will not be using Silvergate SEN and wires” until further notice.&nbsp;



“The action is based on publicly available information on Silvergate and is consistent with other market players,” FalconX said, without elaborating on which players.&nbsp;



“The market is in a heightened risk environment. We are being extremely cautious,” a spokesperson told Blockworks, adding that FalconX has not nixed its relationship with Silvergate officially. &#8220;We maintain a relationship and our account with Silvergate.&#8221;



A few days following the note, a FalconX spokesperson confirmed with Blockworks that Silvergate settlement was to be reinstated.



SEN (Silvergate Exchange Network) is the bank’s internal rails that allow partners to quickly send and receive US dollars and euros at any time of the day.



The network is seen as far more efficient for crypto players such as stablecoin issuer Circle and major trading platforms Kraken and Coinbase than the US’ Automated Clearing House (ACH).&nbsp;



ACH only processes transactions within regular business hours, and it usually takes 24 hours to complete — not exactly convenient for crypto, which prides itself on non-stop operation.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">This is bad I guess as silvergate is at the centre of US crypto. Slide is from Silvergate’s annual report <a href="https://t.co/gX1KnAXlC8">https://t.co/gX1KnAXlC8</a> <a href="https://t.co/VbRoaSa7xy">pic.twitter.com/VbRoaSa7xy</a>&mdash; DMKM 🪙 🪙 (@2paisay) <a href="https://twitter.com/2paisay/status/1593470917606252545?ref_src=twsrc%5Etfw">November 18, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



But unfortunately for Silvergate, bankrupt crypto exchange FTX was also a prominent customer. As of Sept. 30, the bank says it maintained $11.9 billion in customer deposits from crypto customers, of which FTX represented less than 10%.&nbsp;



That would mean perhaps over $1 billion kept with Silvergate is now stuck in limbo pending bankruptcy proceedings. Still, markets have kept a keen eye on Silvergate ever since FTX suffered its own $6 billion bank run, under which it collapsed.&nbsp;



Speculators have wondered whether extreme fear could bring the same kind of ruckus to Silvergate — a rush of cash withdrawals from crypto exchanges or USDC redemptions through Circle could strain Silvergate to breaking point.



Ari Paul, chief investment officer at crypto investment unit BlockTower Capital, tweeted Friday that his firm is confident that Silvergate is solvent with a large margin for error, or “as confident as we can be as non-bank experts performing superficial financial analysis.”



Silvergate has always been &#8220;good faith&#8221; partners to the industry, Paul <a href="https://twitter.com/AriDavidPaul/status/1593628625034743808" target="_blank" rel="noreferrer noopener">tweeted</a>. “Any bank can face liquidity challenges, but Silvergate structured [its] balance sheet very defensively and so is in great shape to deal with short-term liquidity challenges.”



Silvergate rival Signature looks set to benefit from doubts



Silvergate stock (SI) trades publicly on the New York Stock Exchange and has fallen 47% since the FTX brouhaha broke out two weeks ago, wiping $775 million from its market value. For scale, bitcoin has dropped 21% while the tech-heavy Nasdaq 100 has risen 7.5%; the broader S&amp;P 500 gained nearly 5%.



The firm however says that its balance sheet remains resilient and liquid. Aside from its SEN network, Silvergate offers institutions bitcoin-backed loans — including a three-year, $205 million loan to MicroStrategy founder Michael Saylor, funds he’s used to buy more bitcoin.



Silvergate’s outstanding loans are collateralized while keeping enough cash and equivalents (such as US Treasurys) to support withdrawals, the firm says.



In a <a href="https://www.businesswire.com/news/home/20221116006033/en">pres</a><a href="https://www.businesswire.com/news/home/20221116006033/en" target="_blank" rel="noreferrer noopener">s release</a> issued on Thursday, Silvergate noted its deposits were now down to $9.8 billion (a figure that excludes FTX and its affiliates). It said its SEN network continues to operate 24/7 and is currently processing $1.9 billion in daily volume quarter-to-date, compared to $1.2 billion in Q3.



“Silvergate, and its entire banking platform, were purpose-built to withstand periods of market volatility,” a spokesperson told Blockworks, adding the firm aims to help its customers overcome liquidity challenges.



<figure class="wp-block-embed aligncenter is-type-wp-embed is-provider-flourish wp-block-embed-flourish"><div class="wp-block-embed__wrapper">
https://public.flourish.studio/visualisation/11869923/
</div><figcaption>Silvergate stock dropped 10% during Friday morning trade while bitcoin remained steady</figcaption></figure>



The firm also reported that all bitcoin-collateralized loans have performed as expected with zero losses and no forced liquidations, as of Tuesday.



In any case, FalconX said that its customers can send USDC to the platform directly, or wire transfer fiat to Signature Bank — Silvergate’s direct rival.



Signature Bank stock has shed only 11% since FTX went bust, outperforming Silvergate significantly.



Nov. 18, 2022 at 1:48 pm ET: Headline and article updated to clarify that FalconX still maintains a working relationship with Silvergate despite dropping support for SEN and wire transfers indefinitely.



Nov. 19, 2022 at 4:50 am ET: A FalconX spokesperson has since confirmed that Silvergate settlement support has been reinstated.



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‘Extremely Cautious’ FalconX Avoids Crypto Bank Silvergate

<div id="highlights-block_62b224e8b5c6c" class="highlights">
 <ul>
 <li>FalconX CEO Raghu Yarlagadda says bear markets are the best time to build up a business</li>
 <li>The company had raised $210 million at a $3.75 billion valuation last August</li>
 </ul>
 
</div>



Crypto platform FalconX has raised $150 million in a Series D funding round that has more than doubled its valuation in under a year — defying the current crypto bear market.&nbsp;



The California-based company is now valued at $8 billion, up from $3.75 billion following its $210 million <a href="https://cms.blockworks.co/falconx-coindcx-hit-unicorn-status-amid-uncertain-regulatory-environment/" target="_blank" rel="noreferrer noopener">Series C raise</a> in August 2021.



“The investment will allow us to further accelerate growth by looking at [merger and acquisition] opportunities that add strategic value to our existing core offerings,” FalconX CEO Raghu Yarlagadda told Blockworks. “We’ll continue to expand our product offering, doubling down on our market-leading reliable infrastructure and enabling new markets for our institutional customers.”



Launched in 2018, FalconX allows institutions to manage their crypto strategies through a single interface to execute trading, credit and clearing. Its crypto-as-a-service offering allows banks, fintech firms and investment applications to add digital assets to their products.



Yarlagadda added in a statement that his company is one of the few crypto prime brokerages that does not take on market risk — meaning that FalconX is not in conflict with its clients and their trading strategies.



“In light of recent market conditions, this is extremely valuable to our clients who demand a reliable market infrastructure provider,” he said.



Singaporean sovereign wealth fund GIC and B Capital Group, which has <a href="https://www.bcapgroup.com/bcapital-bcg/" target="_blank" rel="noreferrer noopener">a strategic partnership</a> with Boston Consulting Group, led FalconX’s latest fundraising round. Other participants were Thoma Bravo, Wellington Management, Adams Street and Tiger Global Management.



“As a tech-first digital asset infrastructure platform, FalconX provides a holistic product offering paired with unparalleled execution that supports over 70 million transactions on a monthly basis,” B Capital Group General Partner Rashmi Gopinath said in a Wednesday statement. “They are well-positioned to lead the ongoing institutional transition to digital assets for years to come.”



The new funding comes as crypto prices have dropped significantly in recent weeks. Bitcoin’s price was roughly $20,400 early Wednesday morning, according to data compiled by Blockworks — down 32% from a month ago. Cryptocurrency’s collective market value has fallen 30% in that time.



But despite the drawdown, which has led crypto firms such as <a href="https://cms.blockworks.co/gemini-joins-growing-list-of-crypto-exchanges-cutting-staff-amid-downturn/" target="_blank" rel="noreferrer noopener">Gemini</a>, <a href="https://cms.blockworks.co/coinbase-latest-crypto-firm-to-cut-costs-amid-market-downturn/" target="_blank" rel="noreferrer noopener">Coinbase</a> and <a href="https://cms.blockworks.co/crypto-com-cutting-5-of-workforce-amid-digital-asset-downturn/" target="_blank" rel="noreferrer noopener">Crypto.com</a> to pause or slow hiring efforts, FalconX plans to continue adding employees.



<a href="https://www.linkedin.com/careersite/falconx" target="_blank" rel="noreferrer noopener">Open roles</a> include product managers, engineers, analysts, traders and a director of people for the Americas and Europe.&nbsp;



Yarlagadda told Blockworks that bear markets are the best time to build a business.&nbsp;



“With each market downturn, we have emerged significantly stronger by doubling down on product and talent,” he said. “In this broader market downturn, we continue to see A-plus talent excited about crypto, and we’re excited by the prospect of having more talented team members join us.”&nbsp;



The firm hired former Carta chief people officer and Bloomberg head of talent Suzy Walther as its head of people in February amid a push to fill hundreds of roles across engineering, marketing, human resources and customer support.



FalconX also brought aboard former Pinterest and Google executive Jon Kaplan as its head of revenue later that month.



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FalconX Valuation Doubles to $8B Despite Crypto Market Turmoil

<div id="highlights-block_620fab1238b5c" class="highlights">
 <ul>
 <li>Binance.US taps former Societe Generale and Gemini exec to lead compliance efforts</li>
 <li>Bitfury CEO Brian Brooks and former Ally Financial CEO Michael Carpenter are joining Protego Trust Bank’s board</li>
 </ul>
 
</div>



Mike White was appointed to lead Disney’s metaverse strategy. He has spent a decade with the company, most recently as senior vice president of consumer experiences and platforms, and will now be in charge of “connecting the physical and digital worlds” for Disney entertainment, CNBC reported.



Before Disney, White had spent nearly 10 years with Yahoo in several roles, including senior director of strategy and technology.



Binance.US has appointed Tammy Weinrib, formerly of Societe Generale and Gemini, as its chief compliance officer. In addition to engaging US regulators and law enforcement agencies, she will lead the company’s know-your-customer (KYC) and anti-money-laundering (AML) programs.



Crypto.com hired Abhi Bisarya as executive vice president of product, after more than two decades leading product teams at Google, PayPal and Visa.



Bisarya, who led the team that launched the new Google Pay app, will now focus on advancing the adoption of cryptocurrency.



James Beer is set to join Hut 8 Mining as senior vice president of operations to support the company’s expansion.



Beer comes to the Toronto-based miner from eStruxture Data Centers, according to his LinkedIn profile. He has 20 years of experience within service provider organizations serving mission-critical facilities operations, colocation, site design and construction, network architecture, security and managed services.



Hut 8 has also announced the hire of Josh Rayner as its vice president of sales. Formerly working as director of sales at Beanfield Metroconnect, Rayner will focus on the company&#8217;s recently acquired data center and managed services business.



Protego Trust Bank named Brian Brooks and Michael Carpenter to its board as the bank gets set to become a federally chartered national bank.



Brooks, the CEO of blockchain technology company Bitfury, was the CEO at Binance.US for several months <a href="https://cms.blockworks.co/brian-brooks-resigns-as-binanceus-ceo/" target="_blank" rel="noreferrer noopener">but resigned in August</a>, citing “differences over strategic direction” in a Twitter post. He had also previously worked as acting <a href="https://www.occ.treas.gov/" target="_blank" rel="noreferrer noopener">comptroller of the currency</a>.



Carpenter was CEO of Ally Financial from November 2009 to February 2015 and is currently on the board of CIT Group and CIT Bank.



Crypto platform FalconX hired Jon Kaplan as head of revenue to help expand the platform’s solutions offered to institutional clients.



Kaplan spent six years at Pinterest, where he was responsible for the company&#8217;s global revenue operations. Before that, he worked at Google for 12 years as vice president of US sales.



The announcement comes after FalconX announced it is looking to fill hundreds of roles after a <a href="https://cms.blockworks.co/falconx-coindcx-hit-unicorn-status-amid-uncertain-regulatory-environment/" target="_blank" rel="noreferrer noopener">$210 million fundraise</a> in August. <a href="https://cms.blockworks.co/the-latest-in-crypto-hiring-paypal-crypto-com-add-to-digital-assets-headcount/" target="_blank" rel="noreferrer noopener">The company hired</a> a head of people and a vice president of security earlier this month.



Neal Gorevic joined ConsenSys as the blockchain software company’s chief marketing officer after working as Spotify’s global head of consumer marketing.



Among the roughly 370 people ConsenSys has hired in the last seven months, nearly half came from working in the Web2 ecosystem, a spokesperson told Blockworks. About a third of the new hires joined the company from a different industry.



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The Latest in Crypto Hiring: Disney Names Metaverse Lead

<div id="highlights-block_6206b99ef5797" class="highlights">
 <ul>
 <li>PayPal finalized its new crypto advisory council</li>
 <li>21Shares, the largest issuer of cryptocurrency ETPs, hired three senior sales pros to enlarge its US footprint</li>
 </ul>
 
</div>



Bitcoin mining and crypto tech company Bitfury has hired Jonathan Gould as its chief legal officer in the latest instance of a government official to join a crypto firm.



Gould most recently worked as senior deputy comptroller and chief counsel at the US Office of the Comptroller of the Currency (OCC). Before that, he was chief counsel of the US Senate Banking Committee.



Crypto.com has hired Giuseppe Giuliani, previously global head of institutional relationships and services at Kraken, as managing director of the company’s exchange. He will look to expand into new markets and introduce new offerings for institutional investors.



Ken Timsit has been named managing director for the Cronos blockchain. He was formerly chief revenue officer in charge of global sales and marketing at blockchain technology company ConsenSys.



Cronos supports both Ethereum and Cosmos technology, including DeFi, NFTs and metaverse technologies. Timsit will help the blockchain firm scale its DeFi (decentralized finance) and Web3 business by equipping developers with the resources to instantly port apps and crypto assets from other chains.



Sébastien Badault joined digital assets platform Ledger as its vice president of metaverse and Web3. He will oversee the company’s NFT (non-fungible token) division, plus gaming and brand collaborations.



Badault was previously a managing director at Alibaba and also spent more than 10 years at Google, where he ran the company’s French operations. Before Google, he led Amazon’s customer and partner acquisition strategy across the UK, Germany and France.



Crypto prime brokerage FalconX has hired former Carta chief people officer and Bloomberg head of talent Suzy Walther as its head of people, amid a push to fill hundreds of roles across engineering, marketing, HR and customer support.



The company, which <a href="https://cms.blockworks.co/falconx-coindcx-hit-unicorn-status-amid-uncertain-regulatory-environment/" target="_blank" rel="noreferrer noopener">raised</a> $210 million in August, has also hired Sujay Jaladi as its new vice president of security. He was previously chief information security officer at Gusto, Ripple, Harbor, Inc., Earnin and PayPal subsidiary Xoom.



&#8220;Institutional adoption of cryptocurrencies continues to cement the notion that the world&#8217;s economy will be tokenized in 5 to 7 years,&#8221; FalconX CEO Raghu Yarlagadda said in a statement.



TaxBit, a tax and accounting solution for the tokenized economy, hired Nathan Jones as senior vice president of worldwide public sales and government affairs. Jones has worked the last 19 years at IBM subsidiary Red Hat.



The company also brought aboard Miles Fuller as head of government solutions, plus Christi Muoneke as corporate general counsel.



Fuller joins TaxBit after a 15-year stint with the IRS, where he worked in a senior legal role. Muoneke previously spent more than 15 years working at Meta, DocuSign, Microsoft and Avalara.



Charlie Hu, former head of Polygon China, has joined Syscoin, a decentralized, open-source project created in 2014 by the founders of Blockchain Foundry.



As an ecosystem advisor, he will help drive the company’s expansion into untapped markets. While at Polygon, he focused on business development in Asia.&nbsp;



Marathon Digital appointed Raymond Walintukan as vice president of mining operations. He previously served as chief operating officer of Apifiny subsidiary Hash Hive. Before that, he served as the head of operations at Bitmain North America.



The hire comes as Marathon seeks to grow from 3.6 exahashes per second (EH/s) at the start of February to 23.3 EH/s by early next year.



PayPal brought aboard specialists in cryptography, distributed technology, regulation, economics and capital markets to establish a crypto advisory council.



The council includes Peter Briger, Jr., co-CEO of Fortress Investment Group; Chris Brummer, a Georgetown University law professor and faculty director of the Institute of International Economic Law; Dr. Shafi Goldwasser, director of the Simons Institute for the Theory of Computing at the University of California, Berkeley; Timothy Massad, an ​​adjunct law professor at Georgetown University and research fellow at Harvard Kennedy School; Dr. Neha Narula, director of MIT Digital Currency Initiative; and Antoinette Schoar, a finance professor at MIT Sloan School of Management.



Former Domino’s Pizza President Kory Spiroff joined the advisory board of FriesDao.



Spiroff is tasked with bridging real-world operations with blockchain-based governance. FriesDAO plans to acquire and build on-chain membership around popular fast food franchises.



Metaplex Studios, a US organization working to advance Solana NFT protocol Metaplex, tapped Stephen Hess as its CEO.



21Shares, the largest issuer of cryptocurrency ETPs, has hired three senior sales professionals to boost US growth.



Hires include Kayle Watson as US head of sales; Aram Babikian, who will lead US west coast and Latin America business development; and Ches Snider as US head of research sales.



The executives combined have decades of traditional finance experience at firms such as BlackRock, Bear Stearns, Goldman Sachs and Guggenheim Securities.



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The Latest in Crypto Hiring: PayPal, Crypto.com Add to Digital Assets Headcount

Morgan Chittum

<div id="highlights-block_6114326ebd373" class="highlights">
 <ul>
 <li>CoinDCX scored $90 million funding, bringing its valuation to $1.1 billion</li>
 <li>FalconX raised $210 million in a Series C round, quintupling its valuation in less than six months.</li>
 </ul>
 
</div>



Despite the cloud of regulation hanging above digital assets markets in India and <a href="https://cms.blockworks.co/hong-kongs-digital-assets-double-standard/" target="_blank" rel="noreferrer noopener">some parts of Asia</a>, investment continues to pour into crypto infrastructure around the continent.&nbsp;



Cryptocurrency exchange platform CoinDCX, scored $90 million in Series C funding, benchmarking it as India’s first crypto-related unicorn, while FalconX raised $210 million in Series C funding to expand into Asia according to recent announcements. 



Facebook co-founder Eduardo Saverin’s venture capital firm, B Capital Group, led the equity round that brought CoinDCX’s valuation to $1.1 billion.&nbsp;



Prior to achieving unicorn status, CoinDCX, has faced a slew of <a href="https://cms.blockworks.co/indias-muddy-stance-on-bitcoin-causes-confusion/" target="_blank" rel="noreferrer noopener">regulatory scrutiny</a> from the country’s government and other financial authorities over the past year.



<h3 class="wp-block-heading">A Timeline of India’s Contradictory Regulations</h3>



<ul class="wp-block-list"><li>Back in March, Blockworks<a href="https://cms.blockworks.co/indias-muddy-stance-on-bitcoin-causes-confusion/" target="_blank" rel="noreferrer noopener"> reported</a> India’s government would “propose a law banning cryptocurrencies, fining anyone trading in the country or even holding such digital assets.” However, India’s Minister of Finance later backtracked on his remarks, saying that the government would leave “a window” open for bitcoin.</li></ul>



<ul class="wp-block-list"><li>In July, the Dehli High Court of India issued a plea to the country’s Securities and Exchange Board which called for “standardized disclaimers” on cryptocurrency-related advertising, according to a<a href="https://www.newindianexpress.com/nation/2021/jul/14/delhi-hc-issues-notice-on-plea-against-crypto-currency-advertisement-seeks-standardized-disclaimers-2330000.html" target="_blank" rel="noreferrer noopener"> report</a> from The New Indian Express.&nbsp;</li></ul>



<ul class="wp-block-list"><li>&#8220;Having a disclaimer on screen after the end of the advertisement with voice over in English and Hindi&#8230; may instil wisdom of researching and reading up on the risk profiles surrounding crypto-assets prior to investing [their] hard-earned money in digital assets not understood by [them],&#8221; part of the plea stated.</li></ul>



On Tuesday, India’s government said they would further crackdown on crypto use, according to<a href="https://economictimes.indiatimes.com/news/economy/policy/will-take-all-measures-to-eliminate-use-of-crypto-assets-govt/articleshow/85210954.cms" target="_blank" rel="noreferrer noopener"> The Economic Times.</a>



Minister of State for Finance Pankaj Chaudhary said he would try to eliminate the use of “crypto-assets” as funding “illegitimate activities or as part of the payment system”.



“The government does not consider crypto-currencies legal tender or coin and will take all measures to eliminate the use of these crypto-assets in financing illegitimate activities or as part of the payment system,” Chaudhary said.



<h3 class="wp-block-heading">Tiger Global leads FalconX’s funding round while eyeing Asian markets</h3>



FalconX raised $210 million in Series C funding, the cryptocurrency trading platform <a href="https://www.businesswire.com/news/home/20210810005701/en/FalconX-Raises-210M-Following-30x-YoY-Revenue-Growth-Now-Valued-at-3.75-Billion" target="_blank" rel="noreferrer noopener">announced</a> Tuesday. The latest raise quintupled FalconX’s valuation to $3.75 billion in the round led (in part) by Tiger Global, Chief Executive Officer Raghu Yarlagadda said in an <a href="https://www.bloomberg.com/news/articles/2021-08-10/crypto-platform-falconx-quintuples-valuation-to-3-75-billion" target="_blank" rel="noreferrer noopener">interview</a> with Bloomberg.



The California-based platform is targeting Asian markets with leaders of the funding found including Tiger Global Management.



According to <a href="https://www.bloomberg.com/news/articles/2021-07-28/tiger-global-s-20-year-run-in-china-hits-snag-on-new-crackdown" target="_blank" rel="noreferrer noopener">Bloomberg</a>, Tiger Global holds over $8 billion in US ADRs on Chinese companies, as of March.&nbsp;



“As institutional investors continue entering the cryptocurrency market, FalconX has significantly scaled its business and product lines to meet their needs. We’re excited to double down on the leading one-stop shop for institutional trading, credit, and clearing,” said Tiger Global partner Scott Shleifer.



The series was also led by Altimeter Capital, B Capital Group, Sapphire Ventures. Other notable participants include Mirae Asset and Amex Ventures.



Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.