FTX US, a cryptocurrency exchange, announced Wednesday that it has achieved a valuation of $8 Billion after raising $400 M in its initial funding round from investors such as SoftBank Group Corp Japan and Temasek Holdings Singapore.
Paradigm Capital and Multicoin Capital are also included in the Series A funding.
“What this raise signifies to us is that, officially, we are establishing ourselves as the largest competitor of cryptocurrency exchanges within the US and signaling the world that our plans for expansion are very rapid,” FTX US President Brett Harrison stated.
Venture capital investors are looking to invest in the cryptocurrency industry as the market is booming. In November, it surpassed $3 trillion.
According to PitchBook, crypto was the top investment in venture capital in 2021 by 30 billion-dollar firms.
Chicago-based FTX US, founded in 2020 by Wall Street high frequency traders executives, competes with top crypto exchanges Coinbase & Binance.
In October, FTX US purchased LedgerX to expand its reach into options and crypto futures trading.
According to the company, FTX US saw an average daily volume of $360 million during the third quarter. Although its users increased by 52% quarter-over-quarter, the company declined to disclose how many it has overall.
FTX US stated that it plans to use the funds in order to expand its user base, launch new business lines and make strategic investments.
Harrison, who used to work at Citadel Securities, stated that the company plans to increase its 100-strong workforce.
He said, “By having capital, we can go out and be competive and hire the best people.”