Crypto exchange FTX US completes $400 million financing, reaching a valuation of $8 billion

FTX's U.S. subsidiary has closed a $400 million funding round, Reuters reported on Wednesday, with the new funding to be used to expand FTX US's workforce and develop new products.

Chicago-based cryptocurrency exchange FTX US has reached a valuation of $8 billion after completing a new funding round.

FTX's U.S. unit closed a $400 million funding round led by SoftBank Group Corp, Temasek Holdings, Paradigm and Multicoin Capital, Reuters reported on Wednesday.

Brett Harrison, president of FTX US, said that this development makes their company one of the largest cryptocurrency exchanges in the United States and sends a message to the world that they are growing very fast.

Harrison said the company will use the funds to further provide services, as well as develop and expand its workforce.

Back in 2021, the exchange entered into a sale and purchase agreement to acquire cryptocurrency derivatives platform LedgerX, expanding its spot trading services by offering bitcoin (BTC) and ether (ETH) options and futures contracts to investors.

FTX's global exchange raised $420 million from 69 investors, boosting its valuation to $25 billion last year. At the same time, the exchange has also launched a massive marketing campaign by taking the naming rights to the California Memorial Stadium and Miami's NBA Stadium.

Meanwhile, funding for cryptocurrency projects continues to grow in other areas of the ecosystem. On January 19, Secret Network announced a $400 million fund for developers building within its network. A new $225 million ecosystem fund and a $175 million accelerator pool designed to support privacy- and decentralized-oriented applications.

Venture capital firm Andreessen Horowitz also announced its plans to raise $4.5 billion to invest in a cryptocurrency fund. The company will set aside $3.5 billion for its venture capital fund and $1 billion for a seed round in the Web3 space. Meanwhile, UK payments platform Checkout.com recently raised a $1 billion investment to advance cryptocurrency payment processing, bringing the company’s valuation to $40 billion.