American Express stated that its venture capital firm Amex Ventures has invested in Falconx, a cryptocurrency trading platform that focuses on providing services to institutional trading customers. Amex’s investment is a Bitcoin investment announced within a record-breaking week, highlighting the desire of credit card issuers to cash out as institutional interest in cryptocurrencies increases.
Amex Venture’s long-term equity in cryptocurrency
According to a report, Amex Ventures’ acquisition of Falconx’s shares was the culmination of an investigation into cryptocurrency, which was unknown. In a comment made after the announcement, Harshul Sanghi, the global head of American Express, briefly explained the reasons behind the financial services giant’s interest in cryptocurrency startups. He said:
Amex Ventures invests in startups to better understand the emerging areas of the payment ecosystem.
Meanwhile, before the American Stock Exchange (Amex) made an undisclosed amount of investment, the cryptocurrency startup reportedly raised 1,700 in May from the parent company subsidiary funds of Accel, Coinbase Ventures and Fidelity Investments. Ten thousand U.S. dollars”. Since then, Falconx has reported that its revenue has grown substantially, and the platform now “processes approximately $3 billion in monthly transaction volumes and has 250 institutional clients.”
At the same time, the same report quoted Falconx’s CEO and co-founder Raghu Yarlagadda, who claimed that the startup is seeing “more and more traditional service providers and hedge funds have an interest in cryptocurrencies.” The latter’s reported interest is considered a key driver of the current bull market in the crypto market.
As reported by News.bitcoin.com, BTC reached a record high of US$23,777 on December 17th less than 24 hours after breaking the US$20,000 mark. As many bitcoins now expect BTC prices to exceed their previous resistance levels and continue to soar, it is expected that more institutional investors will join the cryptocurrency buying and holding frenzy.
At the same time, because of this happening, Yarlagadda stated that Falconx will be “at the forefront and central position of the development of this kind of institution.”
What is your opinion on Amex Ventures’ acquisition of Falconx shares? Tell us what you think in the comments section.
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