Cryptocurrency exchanges continue to grow day by day. Finally, FTX US has taken a significant investment, increasing its valuation to $ 8 billion. By calmly growing its market share by building better relationships with local regulators, FTX is working towards its long-term goals.
FTX US Reaches $8 Billion Valuation
Cryptocurrency exchange FTX US announced on Wednesday that it has raised $400 million from investors including Japan’s SoftBank Group Corp (9984.T) and Singapore’s Temasek Holdings (TEM.UL). The investment the firm received brought it to a valuation of $8 billion.
“What this increase means for us is that we officially step onto the stage of the biggest competitors of cryptocurrency exchanges in the US and signal to the world that we will continue to expand very quickly,” said Brett Harrison, President of FTX USA.
Cryptocurrencies and Institutional Investors
Institutional investors, who have not been able to remain unresponsive to the increasing interest in cryptocurrencies in recent years, are entering the ecosystem directly or indirectly. Cryptocurrency markets, which exceeded $3 trillion in November, further whetted the appetite of institutional investors. According to research firm PitchBook, venture capital firms invested $30 billion in crypto in 2021.
Chicago-based FTX US was launched in 2020 by former Wall Street trading executives and competes with leading crypto exchanges Coinbase and Binance. In October, FTX US acquired LedgerX to expand into crypto futures and options trading.
According to the company, FTX USA had an average daily volume of $360 million in the third quarter. Its users increased by 52% quarter-on-quarter, although the company declined to share how many users it has in total. FTX US said it plans to use the funds to grow its user base and launch new businesses, and will also consider strategic investments and acquisitions.
Harrison, who previously worked at Citadel Securities, said the company also plans to expand its staff to 100.