- American Express’s Venture arm joined with other investors and invested in the FalconX crypto exchange
- With a vast growth, crypto exchange is planning to create a payment service using crypto tokens
- With such investments, it seems like traditional fund managers are attracted to the crypto industry
The venture arm of American Express has recently invested in FalconX, a crypto exchange platform. Among the investors, American Express, Accel, and Lightspeed Venture Partners have also invested. Indeed, the credit card provider firm didn’t disclose the exact amount of investment. However, in the last funding round of May 2020 FalconX has raised a total amount of $17 million.
American Express sneaking in the cryptosphere via FalconX
As the American Express Venture invested in the cryptocurrency trading platform, it indicates that large financial service providers are sneaking into the virtual assets space. The American Express joined other investing firms like Accel, Accomplice VC, Coinbase Ventures, Fenbushi Capital Partners, Lightspeed Venture Partners, and Avon Ventures. According to Raghu Yarlagadda, the chief executive officer and co-founder of FalconX, traditional asset managers’ interest increases as they add virtual currencies as an inflationary hedge. Indeed, catalyzed by recent macro policies.
Growth of FalconX crypto exchange
Since May 2020, when FalconX completed its last funding round raising $17 million, the exchange has gained approximately 350% of revenue. During FalconX’s last funding round, the exchange served around 250 institutional clients, which has now been increased by 150%. With all these increments, it is also found that the exchange’s average monthly transaction volume has also been tripled to $3 billion. Some of FalconX’s new features are also gaining notable organic growth during the last month. According to Yarlagadda, the exchange has no plans to create a payment service using digital currencies and will learn from the experiences of AmEx Ventures. However, yet the greatest advanced exchange offers loans and clearing transactions in the sector from their one platform with trading services.
Traditional assets managers are entering the crypto space
Observing American Express, it is found that AmEx Ventures is also investing in startups. According to Harshul Shanghai, the global head of the venture, AmEx is investing in the crypto space to understand the payment ecosystem better. However, earlier, institutional investors like MicroStrategy and Square Inc. have also invested in the space. Recently, Guggenheim Partners LLC has also revealed that the firm will invest around 10% of its $5.3 billion Macro Opportunities Fund in any BTC trust.
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