American Express invests in a cryptographic platform for institutional clients
American Express (AmEx) has revealed an investment in the FalconX encryption platform. The exchange is designed for institutions and claims $3 billion in volume per month.
American Express (AmEx), the renowned payment card provider, enters the cryptomastics market with multi-million dollar financing in FalconX. The company is developing a trading platform for cryptomoney trading dedicated to institutional investors.
Neither company has disclosed the size of the investment, although The News Spy it follows an initial financing of $17 million in May. The round included the participation of Accel, Accomplice VC, Avon Ventures, Coinbase Ventures, Fenbushi Capital, Flybridge Capital and Lightspeed Venture Partners.
Harshul Sanghi, Head of American Express Ventures, commented on the investment:
“American Express Ventures invests in startups to better understand the emerging areas of the payments ecosystem, and we are pleased to support FalconX as it moves into the cryptomatics space. »
Increase in institutional activity
In addition to the recent investment by American Express, FalconX has reported strong growth in its institutional client base and revenues. Revenues have increased by 350% since May. The platform claims a trading volume of approximately $3 billion per month and has 250 institutional clients.
Raghu Yarlagadda, co-founder of FalconX, explained :
“A growing number of companies and hedge funds are interested in cryptography. We are at the heart of this institutional growth. »
FalconX explains that fund managers are treating cryptomoney as a hedge against inflation and recent macroeconomic policies.
In June, FalconX announced a partnership with startup TRM Labs, supported by PayPal, to monitor transactions and provide real-time information on potential money laundering and other illegal activity on the platform.
FalconX also intends to explore a payment service dedicated to cryptography, and could benefit from AmEx’s experience.