Jan 26 (Reuters) - Cryptocurrency exchange FTX US said on
Wednesday it had notched 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
The Series A funding also includes investments from crypto
investment firm Paradigm and Multicoin Capital.
"What this raise means to us is that we are officially
establishing ourselves on the stage of the largest competitors
of cryptocurrency exchanges in the U.S., and signaling to the
world that we are going to continue to expand very rapidly," FTX
US President Brett Harrison said.
With the value of cryptocurrencies surging, surpassing $3
trillion in November, venture capital investors are increasingly
looking to put down stakes in the industry.
Venture capital firms invested $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
leading crypto exchanges Coinbase and Binance.
In October, FTX US acquired LedgerX in a move to expand into
crypto futures and options trading.
FTX US had an average daily volume of about $360 million in
the third quarter, according to the company. Its users increased
by 52% quarter over quarter, though the company has declined to
share how many users it has overall.
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 staff, said Harrison,
who previously worked at Citadel Securities.
"By having this capital, we're able to go out and be
competitive and hire the best people," he said.
(Reporting by Hannah Lang in Washington; Editing by Himani