FTX Trading Ltd, the company behind FTX.com, one of the leading cryptocurrency exchange platforms, has announced that it has secured $420 million in a Series B-1 funding round. Following this funding round, the company’s valuation has increased to $25 billion.
This funding round comprised major players in the financial sector, including Sea Capital, IVP, Temasek, Sequoia Capital, Lightspeed Venture Partners, Tiger Global, and ICONIQ Growth. Temasek was involved in a recent Series B funding round, bringing the total contribution that the firm has raised in the two funding rounds to $1 billion.
$420M Funding Round
This funding round comes three months after a Series B funding round was completed. The amount raised from these two funds shows the extent to which the company is growing. FTX has stated that the exchange will use part of these funds to expand to new countries and expand its service offerings.
The CEO of FTX, Sam Bankman-Fried, commented on this funding round, stating, “We founded FTX two years ago with the idea of creating a better financial marketplace. Today we are focused on establishing FTX as a trustworthy and innovative exchange by regularly engaging with regulators around the world and constantly seeking opportunities to enhance our offerings for digital asset investors.
“For this round, we capitalized on those strides and were able to partner with investors that prioritize positioning FTX as the world’s most transparent and compliant cryptocurrency exchange,” he added.
The Head of Product at FTX, Ramnik Arora, also commented on this funding round, stating that the additional capital would enable the exchange to improve on customer experiences and increase the market opportunities that users can get access to.
Arora also stated that some of the new opportunities FTX was focusing on were NFT and videogame partnerships. “We expect to make strategic investments designed to grow the business and expand our regulatory coverage.”
FTX Achieves Major Growth
FTX exchange has enjoyed major growth over the past year. In July, the exchange completed a $1 billion Series B funding round. The exchange’s clientele has also increased by 48%, while the trading volumes have increased by 75%.
FTX’s daily average volumes now stand at around $14 billion. FTX established its new headquarters in the Bahamas following the July funding round and met all the regulatory requirements needed to operate in the country.
FTX US, the US affiliate, also received the green light from the US Commodities and Futures Trading Commission to offer crypto futures and options. It received this licensing through its partnership with LedgerX.
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