It was confirmed that a new investment had been poured into digital assets. But this time the investment brought into by American giant company American Express.
The details of the news pointed out that American Express had poured in its very first investment in cryptocurrencies. It was told that the investment was made with a crypto-exchange/trading platform called FalconX. Though the amount of investment had not been disclosed, but rumor suggested that the investment was huge.
This is the second big institutional investment coming in within this week. Earlier it was the huge investment injected by 149 years old American company namely Massachusetts Mutual Life Insurance Funds. The Mutual Fund had brought into multi-billion dollars investment in cryptocurrencies this year. It was this institutional investment that was the force behind boosting up the Bull-Run for cryptocurrencies, and in particular for Bitcoin.
The crypto institutional investment received this year was an all-time high and had set new records for the industry. The ultimate benefit of institutional investment is that it reduces the digital assets’ selling pressure from the market. Furthermore, demand of supply also decreases significantly because individuals and institutions would want to hold their assets for longer periods.
It was told that American Express was exploring the possibility of investing in cryptocurrencies for many years. But was reluctant to do because of various risks attached with cryptocurrencies like volatility. However, looking at the overall value surge of cryptocurrencies and amid the Covid-19 crisis, it decided to invest in digital coins.
Meanwhile, in 2019, American Express had also introduced a blockchain-based app for facilitating crypto vendors and contractors. Abra, which also is a crypto entity rendering crypto trading and exchanging services, too got investment from American Ventures. American Ventures had been an investment arm for its parent company, American Express.
Furthermore, various rewards incentives were introduced by the company in its blockchain-based app.
On the other hand, FalconX had acquired around 350% of investment this year. The crypto trade and exchange volume at FalconX exceeded US$ 3 Billion per month. Similarly, the number of institutional clients for FalconX had immensely increased during the pandemic. It currently has 250 major institutional clients.