FalconX Raises Funding From American Express Ventures

By Dan Anderson ● December 25, 2020
  • FalconX – an all-in-one platform for institutions trading cryptocurrency – announced it received an investment from American Express Ventures

FalconX – an all-in-one platform for institutions trading cryptocurrency – announced it received an investment from American Express Ventures. American Express Ventures is joining existing investors Accel, Accomplice VC, Coinbase Ventures, Fenbushi Capital, Flybridge Capital Partners, Lightspeed Venture Partners, and Avon Ventures (a venture capital fund affiliated with FMR LLC, the parent company of Fidelity Investments). This funding round adds to the $17 million in funding FalconX announced on May 13, 2020.

How does FalconX work? FalconX provides institutional clients the ability to access cryptocurrency markets seamlessly through a single platform for trading, credit, and clearing. Today’s cryptocurrency infrastructure is inefficient for financial institutions as it relies on a complex combination of liquidity sources across different markets. FalconX has created a connecting tissue to provide institutional clients with value-added solutions and superior customer service through a single, fully integrated platform.

FalconX has experienced revenue growth of 350% since it completed its last funding round (May 2020). And the company serves 250 institutional clients, up 150% from May 2020 and its transaction volumes have tripled to around $3 billion on a monthly basis, making it one of the largest full-service providers. Plus the company’s new product line FalconX Credit – which enables clients to extend settlement is experiencing notable organic growth reaching over $1 billion in credit transactions during November 2020.

KEY QUOTES:

“We’re seeing growing interest from traditional asset managers who are adding cryptocurrencies as an inflationary hedge, catalyzed by recent macro-economic policies. It is a great pleasure to welcome American Express Ventures as we continue to invest in expanding FalconX’s product offering.”

– Raghu Yarlagadda, FalconX CEO and co-founder

“FalconX is helping bring simplicity to the increasingly complex digital asset space through a platform that provides discovery and pricing all in one place. 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.”

– Harshul Sanghi, Global Head of Amex Ventures