TL;DR
- American Express announces debut in crypto space
- AmeX set to promote innovation in the digital asset space
Crypto trading platform which targets institutional clients, FalconX has managed to attract investment from American Express Ventures, an arm of American Express, a financial company.
American Express via its investment in the crypto trading platform announced its debut into the crypto world although they stayed silent about the amount invested in FalconX.
Contained in a release where the American financial giant announced their investment in the crypto trading platform, they said that FalconX brings simplicity into the increasingly complex digital asset space. American Express stated that the platform provides discovery and pricing all in one place.
However, FalconX recently attracted investment after its funding round from a series of venture capital firm like Accel, Accomplice VC, Avon Ventures, Coinbase Ventures, among others.
Why American Express invested in Crypto trading platform FalconX
American express stated that they invest in startups to have a better understanding of emerging areas of the payments ecosystem. Their interest in FalcoX, however, is to promote innovation in the digital asset space, including digital currencies.
Since 2019, American Express has been investigating cryptocurrencies further explaining the reason for their investment. The financial giant also rolled out an app that uses blockchain to let contractors and vendors reconcile invoices and timesheets.
What is FalconX up to?
FalconX co-founder and CEO Raghu Yarlagadda said that there has been growing interest from traditional investors in cryptos, especially as an inflatory hedge. He also expressed excitement about American Express investment in their firm.
2020 has seen several firms like MicroStrategy, Square, among others, invest in Bitcoin. Guggenheim Partners LLC also announced that they could invest around 10 percent of its $5.3 billion macro opportunities in Bitcoin.
Yarlagadda said in respect to Amex investment that they are trying to create a payment service using crypto and could learn from the American financial giant.
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