Chicago-based FTX US was launched in 2020.
Cryptocurrency exchange FTX US said Wednesday that it had a valuation of $8 billion after raising $400 million in its first funding round from investors including Japan’s SoftBank Group Corp and Singapore’s Temasek Holdings.
The Series A funding also includes investments from crypto investment firms Paradigm and Multicoin Capital.
FTX US President Brett Harrison said, “What this growth means for us is that we are officially positioning ourselves on the platform of the largest competitors of cryptocurrency exchanges in the US, and are signaling to the world that we Will continue to expand very rapidly.” said.
With the soaring value of cryptocurrencies, exceeding $3 trillion in November, venture capital investors are increasingly looking to lose stake in the industry.
Venture capital firms will invest $30 billion in crypto in 2021, according to research firm Pitchbook.
Chicago-based FTX US was launched in 2020 by former Wall Street high-frequency trading executives, and competes with major crypto exchanges Coinbase and Binance.
In October, FTX US acquired LedgerX to expand into crypto futures and options trading.
According to the company, the average daily volume of FTX US in the third quarter was approximately $360 million. Its users grew 52% quarter over quarter, though the company declined to share how many users it has in total.
FTX US said it intends to use the funds to grow 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, Harrison said, who previously worked at Citadel Securities.
“By having this capital, we are able to go out and be competitive and hire the best people,” he said.
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