American Express says its venture arm, Amex Ventures, has invested in Falconx, the cryptocurrency trading platform focused on serving institutional trading clients. Announced during a record week for bitcoin, Amex’s investment underscores the credit card company’s desire to capitalize on the growing institutional interest in cryptocurrencies.

Amex Venture’s long-term stake in cryptos

According to an report, Amex Ventures’ acquisition of a stake in Falconx is the result of an investigation into cryptocurrencies that has taken an unknown number of years. In comments made after the announcement, Harshul Sanghi, the global head of Amex, briefly explains the rationale behind the financial services firm’s interest in crypto startups. He says:

Amex Ventures invests in startups as a way to better understand emerging areas of the payment ecosystem.

Meanwhile, prior to Amex’s investment for an undisclosed amount, the crypto start-up reportedly raised $ 17 million in May “from Accel, Coinbase Ventures, among others, and a fund affiliated with Fidelity Investments’ parent company.” Since then, Falconx reports that its revenues have increased significantly and the platform now processes “approximately $ 3 billion in transaction volume per month and has 250 institutional clients.”

Meanwhile, the same report cites Raghu Yarlagadda, Falconx’s CEO and co-founder, as claiming that the start-up sees an “increasing number of traditional service providers and hedge funds becoming interested in cryptocurrencies.” The interest reported by the latter is believed to be the main driver of the current bull run in the crypto market.

Institutional growth

As reported by News.bitcoin.com, BTC touched a new all-time high of $ 23,777 on December 17 less than 24 hours after crossing $ 20,000. Now many bitcoiners use the BTC price to continue to rise after passing the previous resistance level, more institutional investors are expected to participate in buying and holding cryptocurrencies.

In the meantime, while this is happening, Yarlagadda notes that Falconx will be “at the forefront and at the center of seeing this institutional growth.”

What do you think about Amex Ventures’s acquisition of a stake in Falconx? Tell us what you think in the comments section.

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