Cryptocurrency exchange FTX US said on Wednesday it had reached a valuation of $8 billion after raising $400 million in its first round of funding from investors including Japan’s SoftBank Group Corp and Singapore’s Temasek Holdings.
The Series A funding also includes investments from crypto investment firm Paradigm and Multicoin Capital.
“What this raise means for us is that we are officially establishing ourselves on the podium of the biggest competitors to cryptocurrency exchanges in the US, signaling to the world that we will continue to expand very quickly,” FTX US President Brett Harrison said.
With the value of cryptocurrencies soaring, surpassing $3 trillion in November, venture capital investors are increasingly looking to invest in the industry.
According to research firm PitchBook, venture capital firms will have invested $30 billion in crypto by 2021.
Chicago-based FTX US was launched in 2020 by former Wall Street high-frequency trading executives and competes with leading crypto exchanges Coinbase and Binance.
In October, FTX US acquired LedgerX in an effort to expand into crypto futures and options trading.
According to the company, FTX US had an average daily volume of about $360 million in the third quarter. The number of users increased by 52% on a quarterly basis, although the company has declined to share how many users it has in total.
FTX US said it plans to use the funds to expand its user base and launch new business lines, and will also consider strategic investments and acquisitions.
It also plans to expand its 100-strong workforce, said Harrison, who previously worked at Citadel Securities.
“Having this capital allows us to be competitive and hire the best people,” he said.
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