FTX US raised $400M first funding round, valued $8B

Cryptocurrency exchange FTX US has announced 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 Holdings. 

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.

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 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.

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