With cryptocurrencies getting more attraction from institutional investors, there has been a flurry of companies looking to cash in on that opportunity.

American Express, one of the United States' foremost financial institutions, recently joined the fray with a new investment.

New York-based financial services conglomerate American Express has taken its first step into the crypto market, backing FalconX, a crypto trading platform.

The investment was led by American Express Ventures, the financial institution's venture capital arm, per a recent press release.

The press release didn't reveal the investment's size or how much American Express purchased in FalconX. However, the company's financial backing adds to the $17 million that FalconX raised in May. American Express Ventures is joining an impressive list of investors in FalconX, including Coinbase Ventures, Avon Ventures, Accomplice VC, Accel, and more.

FalconX has had a stellar 2020. Based in San Mateo, California, the firm has been operating for over two years but has seen tremendous growth in 2020. With the institutional interest in cryptocurrencies on the rise, the firm's business has thrived too.

As the press release showed, FalconX's revenues have grown by 350 percent since it completed the May 2020 funding round. Institutional clients have increased by 150 percent in that period, with transaction volumes now topping $3 billion monthly.

Raghu Yarlagadda, FalconX CEO and co-founder praised the current times, explaining that institutions are running to crypto to hedge their risks.

The company could be on a path to more growth as the institutional crypto investment is set to increase. Bitcoin broke the $20,000 mark for the first time this week and has added even more to its rally. With the traditional economy still reeling from the coronavirus and analyses of the Biden administration's possible economic policies, many are flocking into the crypto space for safety.

Last week, the Wall Street Journal reported that MassMutual, one of the country's foremost insurance firms, had pledged $100 million into Bitcoin. The company reportedly made the purchase through NYDIG, a New York-based fund management company with a reported $2.3 billion portfolio.

Company spokeswoman Chelsea Haraty explained to the news medium that the company would assess the new investment's performance to determine any possible long-term crypto plays. However, they are staying positive in their outlook.

Considering that Bitcoin traded at $18,300 when the company's investment broke out, MassMutual appears to have turned $100 million to $123 million (Bitcoin trades at $22,600 at press time)

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