Chicago-based cryptocurrency exchange FTX US has reached a valuation of $8 billion following a new capital raising.
According to Reuters on Wednesday, FTX’s US subsidiary closed a $400 million funding round led by SoftBank Group Corp, Temasek Holdings, Paradigm and Multicoin Capital.
FTX US President Brett Harrison said that this development places his company as one of the largest cryptocurrency exchanges in the United States and sends a message to the world that they are growing very quickly.
Harrison indicated that the company will use the funds to expand its offerings as well as grow and expand its workforce.
In 2021, the exchange entered into a buy and sell agreement to acquire crypto derivatives platform LedgerX to expand its spot trading services by offering Bitcoin (BTC) and Ether (ETH) options and futures contracts to investors.
FTX global exchange raised $420 million from 69 investors raising its valuation to $25 billion last year. At the same time, the exchange also boosted marketing efforts by acquiring the naming rights to Cal Memorial Stadium and Miami’s NBA arena.
Meanwhile, funding for crypto projects continues to grow in other areas of the ecosystem. On January 19, Secret Network announced a $400 million funding offer for developers building within its network. The new $225 million ecosystem fund along with a $175 million accelerator pool aims to support decentralized and privacy-oriented applications.
Venture capital firm Andreessen Horowitz also announced plans to raise $4.5 billion to invest in crypto funds.. The company would allocate USD 3.5 billion for its venture capital fund and USD 1 billion for initial investments in the Web3 space. Adding to this, UK payment platform Checkout.com recently raised $1 billion in investment to advance crypto payment processing, bringing the company’s valuation to $40 billion.
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