American Express invests in a cryptocurrency trading platform with monthly transactions of approximately $ 3 billion

FalconX, an all-in-one platform for institutions trading cryptocurrency, announced an investment from American Express Ventures.

Trading as principal, FalconX provides institutional clients the ability to access cryptocurrency markets seamlessly through a single platform for trading, credit, and clearing.

FalconX has experienced revenue growth of 350% since completing its last funding round (May 2020). The company serves 250 institutional clients, up 150% from May 2020, and its transaction volumes have tripled to around $3 billion on a monthly basis, making it one of the largest full-service providers.

In addition, the company’s new product line, FalconX Credit, which enables clients to extend settlement, is experiencing notable organic growth reaching over $1 billion in credit transactions during November 2020.

“We’re seeing growing interest from traditional asset managers who are adding cryptocurrencies as an inflationary hedge, catalyzed by recent macro-economic policies,” said Raghu Yarlagadda, FalconX CEO and co-founder.

“FalconX is helping bring simplicity to the increasingly complex digital asset space through a platform that provides discovery and pricing all in one place,” said Harshul Sanghi, Global Head of Amex Ventures. “Amex Ventures invests in startups as a way to better understand emerging areas of the payments ecosystem, and we are pleased to support FalconX as it continues to drive innovation in the digital asset space, including digital currencies.”

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AmEx has been investigating cryptocurrencies for years. In 2019, the company rolled out an app that uses blockchain – the digital ledger behind many cryptocurrencies – to let contractors and vendors reconcile invoices and time sheets. Amex Ventures remains an investor in Abra, which allows for trading of cryptocurrencies.

AmEx has also tested using blockchain to let merchants create tailored offers involving membership rewards points, and enabling international business-to-business payments.