AMEX Invests In Institutional Trading Cryptocurrency Platform
FalconX, which claims to be the most all-in-one technologically advanced digital asset trading platform for institutions trading cryptocurrency, recently announced an investment by American Express' venture arm, American Express Ventures. American Express Ventures joined FalconX' existing investors, which include Coinbase Ventures, Accel, Flybridge Capital Partners and Lightspeed Venture Partners. While American Express Ventures did not disclose the amount of its investment in the San Mateo, California-based startup, FalconX reportedly raised $17 million earlier this year. According to Bloomberg, "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."
American Express Ventures is an investor in trading platform Abra. In addition, American Express has also tested using blockchain to allow merchants to create tailored offers involving membership rewards points, and enabling international business-to-business payments.
According to FalconX, its platform provides institutional clients the ability to access cryptocurrency markets seamlessly through a single platform for trading, credit and clearing. The company believes that the current cryptocurrency infrastructure is inefficient for financial institutions, which need to rely on a complex combination of liquidity sources across different markets. FalconX intends to be the connecting tissue to provide institutional clients with value-added solutions and superior customer service through a single, fully integrated platform. In a recent FalconX press release, FalconX stated that it has experienced revenue growth of 350% since completion of its last funding round, which took place in 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.
FalconX' 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.
The above references an opinion and is for information purposes only. It is not intended to serve as investment or legal advice.