A $400 million bet on FTX’s U.S. presence
The sharp market downturn we’ve seen in the past few weeks failed to shake investor confidence in the crypto industry. This is most evident in the latest fundraising round FTX’s U.S. subsidiary completed, which put the company’s valuation at $8 billion.
FTX.US completed its first external fundraising round, receiving $400 million in investment from Softbank’s Vision Fund 2, Temasek, and the Ontario Teachers’ Pension Plan Board.
This is a huge success for FTX.US, which launched trading on its platform only in May 2020. Alameda Research, the parent company of the FTX exchange, established FTX.US to distinguish it from the main exchange as the U.S. government began to tighten its regulation of the crypto market.
FTX.US hopes that the investment will help it beat Coinbase and Robinhood, its biggest competitors in the country. Brett Harrison, the president of FTX.US, told CNBC that the company will use a big portion of the investment to explore derivatives.