American Express Enters Cryptocurrency Market
American Express, the largest US financial firm, has made a new investment in FalconX, an institutional crypto trading platform. American Express Ventures didn’t disclose the exact amount of the investment.
According to the press release that FalconX shared, American Express plans to explore the possibility of offering services related to digital assets as part of the new partnership. FalconX is a digital assets trading platform that focuses on institutional investors.
American Express was founded in 1850 and has its headquarters in New York. Current market capitalization for the financial company is approximately $95 billion. Recent investments in FalconX and FalconX have been a part of the company’s efforts to meet growing demand for digital assets.
Harshul Sanghi (Global Head at American Express Ventures), commented on the investment. “FalconX helps bring simplicity to the increasingly complicated digital asset space through an online platform that allows discovery and pricing in one place. American Express Ventures invests as a way of better understanding emerging areas in the payments ecosystem. We are happy to support FalconX in its continued innovation in the digital asset sector, including digital currencies.
FalconX also reported an increase in institutional customers and revenue, along with the American Express investment. According to the company, investment managers view cryptocurrencies as an inflationary risk hedge against traditional assets. FalconX raised $17 million in venture capital earlier this year to expand its cryptocurrency trading services.
“We are seeing a growing interest from traditional asset mangers who are adding cryptocurrency as an inflationary hedge, fueled by recent macroeconomic policies. American Express Ventures is our pleasure as we invest in expanding FalconX’s product offerings,” Raghu Yarlagadda (CEO and co-founder of FalconX) said in a statement.