FalconX Receives Support From Credit Card Firm American Express

Institutional cryptocurrency trading platform, FalconX, has gotten a new investor. American Express is now the latest investor, through its venture capital arm: American Express Ventures.

FalconX Records Impressive Growth

This could be an indication that American Express, like other institutions, is looking for how to enter the crypto space. According to Bloomberg, the exact amount of money put in by American Express was not revealed. This investment could also be a sign of a forthcoming partnership between the two companies.

Earlier in May, the company was able to raise about $17 million in venture capital for expansion. The round saw the participation of top venture capital arms including Accomplice VC, Avon Ventures, and Coinbase Ventures. Since then, FalconX has been recording impressive growth. The crypto platform has witnessed about a four times increase in its revenue.

According to CEO Raghu Yarlagadda, FalconX handles a transaction volume of $3 billion every month. He also pointed out that the number of initial clients has nearly doubled since May, standing at 250 now. Yarlagadda said his company is also considering the launch of a payment service and might acquire knowledge from this latest investor.

“FalconX is helping bring simplicity to the increasingly complex digital asset space,” said Harshul Sanghi, Global Head of American Express Ventures. He explained that the platform is achieving by “providing discovery and pricing all in one place.” FalconX is optimistic that this investment would aid its growth and help it advance its market position. The firm seeks to be the go-to firm for institutional investors interested in crypto.

American Express Finally Moving into Crypto?

American Express has always shown a clear interest in cryptocurrency, although it has not launched into it fully. Last year, the company launched a blockchain-based application.

The application allowed both contractors and sellers to collaborate on different kinda invoices. In 2018 the credit platform partnered with Boxed, an online retailing company to give out blockchain rewards. This lets companies give unique rewards to each American Express cardholder.