Amex Ventures, the investment arm of American Express has invested in FalconX, a cryptocurrency trading platform. According to Bloomberg, this gesture is “another sign” that prominent financial service companies are “tiptoeing” into the cryptocurrency sector.
Amex Ventures did not reveal how much it invested into FalconX, although the latter has raised $17 million in May. Alongside American Express, notable companies such as Coinbase Ventures and Accel also contributed to the said amount.
Harshul Sanghi, global head of Amex Ventures, said:
Amex Ventures invests in startups as a way to better understand emerging areas of the payments ecosystem.
That being said, FalconX CEO and Co-Founder Raghu Yarlagadda said that their revenue has skyrocketed to 350% since May. He beamed that they are “at the front and center” of witnessing this growth.
This is not the first time that American Express invested in a cryptocurrency-based company. Prior to this, it invested in Abra, another cryptocurrency startup that attained stellar success.
Moreover, American Express is neither the only mainstream payment company that expressed interest in crypto. Among its rivals, Visa is perhaps the most vocal. In fact, exchange giant Binance is offering a Visa debit card. Contemporary Coinbase has also started offering the same service. What is more, Visa CEO Alfred Kelly said in an interview with CNBC that they are “already working with about 25 crypto players” today.
Also worth mentioning is PayPal, which rolled out its Bitcoin option for payments and storage. In fact, its stock recently skyrocketed by 17%, possibly due to accepting Bitcoin.