American Express Co.’s venture arm has invested in the cryptocurrency trading platform FalconX. This is another sign that major financial service providers are quietly entering the digital asset space, according to the news in Bloomberg.

Credit card provider American Express (AmEx); In May, Accel did not disclose the amount invested in the California-based San Mateo venture, which raised $ 17 million from a fund affiliated with Coinbase Ventures and Fidelity Investments’ parent company.

AmEx has been researching cryptocurrencies for years. In 2019, the company launched an application that uses blockchain to allow contract parties to reconcile invoices and timelines. Amex Ventures also continues to be an investor in the Abra venture, which allows the trading of cryptocurrencies. AmEx conducted various tests using blockchain to allow sellers to create special offers that include membership reward points and enable international business-to-business payments.

“Amex Ventures invests in startups as a way to better understand the emerging areas of the payments ecosystem,” said Harshul Sanghi, global president, Amex Ventures.

Revenue of the cryptocurrency platform increased by over 300% in 7 months

According to Bloomberg, FalconX’s revenue has increased by 350% since May. Raghu Yarlagadda, CEO and co-founder of FalconX, said the platform handles around $ 3 billion per month and has 250 corporate clients. He noted that a growing number of traditional service providers and hedge funds are getting interested in cryptocurrencies.

“Actually, we are one of those who have experienced this corporate growth at the forefront and most centrally,” Yarlagadda said in an interview.

Earlier this year, companies like MicroStrategy and Square invested in Bitcoin. Guggenheim Partners LLC recently said it could invest up to 10% of the $ 5.3 billion Macro Opportunities Fund in a Bitcoin fund.

Yarlagadda said FalconX wants to create a payment service using crypto and that AmEx can learn from its experience.

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