American Express Ventures has invested $17 million in FalconX, a platform for institutional cryptocurrency trading.
FalconX presents itself as “the operating system supporting global crypto trading” and is based in San Francisco, Chicago, Malta and in Bangalore, India.
Its team is a mix of Silicon Valley and Wall Street professionals, including Google, Citadel, Goldman Sachs, Jump Trading, PayPal, Pantera Capital, WorldQuant, Kraken and Peak6 Investments.
Its long-standing investors include the likes of Coinbase Ventures, Accel, Accomplice VC, Fenbushi Capital, Flybridge Capital Partners, Lightspeed Venture Partners and Avon Ventures, a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments.
The company claims 350% revenue growth since the completion of its latest funding round in May this year and 150% growth in the number of institutional clients it serves.
It also claims transaction volume on its platform has risen to around $3 billion on a monthly basis.
American Express enters the crypto sector
The goal is to build a network for the tokenized economy of the future with an all-in-one solution that enables hundreds of institutions to transact billions of dollars in cryptocurrency trading, lending and clearing.
FalconX wants to offer large institutional clients the ability to seamlessly access crypto markets through a single platform for trading, credit and clearing. In fact, current crypto infrastructures would be inefficient for financial institutions, as they rely on a complex combination of liquidity sources in different markets.
Global Head of Amex Ventures, Harshul Sanghi, said:
“FalconX is helping bring simplicity to the increasingly complex digital asset space through a platform that provides discovery and pricing all in one place. 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”.
FalconX CEO and co-founder Raghu Yarlagadda added:
“We’re seeing growing interest from traditional asset managers who are adding cryptocurrencies as an inflationary hedge, catalyzed by recent macro-economic policies. It is a great pleasure to welcome American Express Ventures as we continue to invest in expanding FalconX’s product offering”.