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Home Latest News Business American Express' Venture Arm Invests in a Cryptocurrency Exchange Platform

American Express’ Venture Arm Invests in a Cryptocurrency Exchange Platform

American Express says its venture arm, Amex Ventures has invested in the cryptocurrency trading company Falconx which focuses on serving institutional trading customers. The acquisition by Amex, reported for bitcoin during a record-breaking week, emphasizes the intention of the credit card issuer to cash in on the growing institutional interest in cryptocurrencies.

The purchase of a stake in Falconx by Amex Projects is the result of a crypto investigation that took an undisclosed number of years, according to a study. Harshul Sanghi, the global head of Amex, briefly clarified the reasoning behind the presence of the financial services giant in crypto startups in comments made after the announcement. He’s saying: “Amex Ventures invests in startups as a way to better understand emerging areas of the payments ecosystem.”

In the meantime, the crypto start-up reportedly raised $17 million in May before Amex’s investment for an undisclosed amount “from the likes of Accel, Coinbase Ventures and a fund affiliated with Fidelity Investments’ parent company.” Since then, Falconx reports that its revenues have grown significantly and the platform now handles “around $3 billion in transaction volume monthly and has 250 institutional clients.”

Meanwhile, as news.bitcoin.com reported the same article quotes Raghu Yarlagadda, chief executive and co-founder of Falconx, who says that the start-up is seeing an “increasing number of traditional service providers and hedge funds become interested in cryptocurrencies.” The interest reported by the latter is believed to be the biggest cause of the current bull run of the crypto market.

Less than 24 hours after crossing the $20,000 mark, BTC reached a new all-time high of $23,777 on December 17. With many Bitcoiners now expecting the BTC price to continue rising, more retail investors are predicted to enter the crypto buying and holding binge, having reached its previous level of resistance.

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