The venture capital division of the American Express payment system invested in the development of a cryptocurrency trading platform for institutional clients of FalconX.
The press release notes that the investment in the cryptocurrency platform marks another step in the adoption of cryptocurrencies in American Express. The amount of investments in the FalconX was not disclosed.
“We see a growing interest in cryptocurrencies from traditional asset managers. They are increasingly adding digital assets to their portfolios as an inflation hedge, especially against the backdrop of recent macroeconomic decisions. We are very pleased to welcome American Express as our investment partner supporting the development of trading platform FalconX products, “said Raghu Yarlagadda, CEO and co-founder of FalconX.
According to Harshul Sanghi, head of global business at Amex Ventures, trading platform FalconX facilitates access to an increasingly complex space of digital assets. On the platform, all the necessary information and price flows are available in one place.
Earlier, American Express repeatedly used blockchain-based solutions. Including the Ripple xCurrent system for cross-border payments.
The Chicago Commodity Exchange (CME Group) said that already on February 8, traders will have access to a new product – ETH futures trading will be launched on the site.
Air futures will be an analogue of another popular derivative – Bitcoin futures. The new product will also be calculated in fiat currency, and the price of futures will be based on the base price index CME CF Ether-Dollar Reference Rate. Each contract will be 50 ETH.
“Based on the success of bitcoin futures and options, the CME Group will add the opportunity to trade futures on air in February,” the exchange said in a statement.
Success of derivatives for bitcoin was confirmed also by the head of CME Group of stock indices and alternative investment products Tim McCourt:
“Given the increasing interest and marked growth in our options and Bitcoin futures, we believe the ability to trade air futures will give our customers a valuable tool for trading and hedging.”
Recall that trading in bitcoin futures on the CME platform was launched in December 2017, and in January 2020 trade in options for the first cryptocurrency started.