By
Steve Muchoki
April 17th, 2024
The funding from American Express Ventures as well as the other FalconX investors will help position the company to tap into the potential opportunities in the space in 2021.
FalconX, an all-in-one American technology company with a platform for institutions trading cryptocurrency, has welcomed American Express Ventures as its latest investor and funding partner. According to the official announcement published on Wednesday, the investment from American Express Ventures comes as an extension of the $17 million funding round launched by FalconX back in May 2020.
Following this latest funding from American Express Ventures (actual funds not disclosed), the payment giant now joins FalconX’s existing investors which include Coinbase Ventures, Flybridge Capital Partners, Lightspeed Venture Partners, and Avon Ventures, a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments.
With the liquidity provided through the backing of its investors, FalconX is able to offer its growing institutional clients its all in one cryptocurrency services bordering on trading, credit provision, and clearing. According to the company, the platform has seen exponential growth both in its monthly revenue and its clients alike. It revealed that from the last funding round announced on May 13th, its revenue has grown to over $3 billion monthly amounting to a 350% growth. Its client base has also grown by over 150% to 250 as of Wednesday when it made the report.
“We’re seeing growing interest from traditional asset managers who are adding cryptocurrencies as an inflationary hedge, catalyzed by recent macro-economic policies,” said Raghu Yarlagadda, FalconX CEO and co-founder. “It is a great pleasure to welcome American Express Ventures as we continue to invest in expanding FalconX’s product offering.”
FalconX Seeks to Use Its Investor Funds to Drive Product Simplicity
The coronavirus inspired growth in the cryptocurrency ecosystem is partly being fueled by the crop of institutional investors entering into space on a daily basis. In a bid to land a fair share of these new institutional investors, several cryptocurrency service providers including FalconX are making unique provisions that are capable of enticing new clients.
The operation of a simple platform that serves a multifunction is one of the selling points of FalconX. “FalconX is helping bring simplicity to the increasingly complex digital asset space through a platform that provides discovery and pricing all in one place,” said Harshul Sanghi, Global Head of Amex Ventures. “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.”
With the cryptocurrency ecosystem experiencing a boom due to the new price rally of Bitcoin, the funding from American Express Ventures as well as the other FalconX investors will help position the company to tap into the potential opportunities in the space in the year ahead.