https://ift.tt/3qYNzZ4 US Hits $8B Valuation Following a $400M Raise from SoftBank and Others

FTX US is now valued at $8 billion after raising $400 million from top investors.

Mainstream cryptocurrency exchange, FTX US today announced it has raised $400 million in its first funding round which has increased its valuation to $8 billion.

Japan’s SoftBank Invests in FTX US

According  to the announcement, the funding was led by Japanese multinational conglomerate holding company SoftBank Group Corp and Singapore’s Temasek Holdings.

The round also saw other backers, including crypto-focused investment firm Paradigm and Multicoin Capital.

The American exchange noted that the cash injection will be used to expand its business and take it to a larger audience globally.

“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.

Harrison further added that the fresh capital will also be used to increase its labor force.

Business Expansion

In recent times, FTX US has been making moves to expand its product offerings from not only crypto trading but also digital asset derivatives products.

It took its first step in offering crypto derivative products in October after acquiring LedgerX, a regulated crypto derivative platform, after which the latter’s name was rebranded as FTX US Derivatives.

Following completion of the acquisition, FTX US obtained three different licenses including CFTC regulated Designated Contract Market (DCM), Swap Execution Facility (SEF), and Derivatives Clearing Organization (DCO), to allow it to offer such products to US customers.

Meanwhile, in October,  FTX, the parent company of FTX US, reached a $25 billion valuation after securing $450 million from 69 industry investors.

Earlier this month, the company set up a $2 billion venture fund unit to invest in crypto startups. The venture fund is headed by Amy Wu, a former partner at Lightspeed global venture capital firm.