The fourth Crypto Fund has been in the works for some time; Cointelegraph first reported on it in January. It doubles the previous crypto fund’s size and demonstrates the growing interest among the firm’s limited partners in boosting their exposure to cryptocurrency firms.
The new funding has come less than a year since Andreessen Horowitz announced the launch of its $2.2 billion Crypto Fund III. A16z’s dominance has made waves in the crypto industry throughout recent months, with several crypto native companies like Paradigm and Electric Capital raising enormous sums to compete against it.
Related:$3B flows to metaverse and Web3 gaming this month as a16z tips in $600M
Formerly known for investments in Instagram and Slack, the firm first entered the crypto sector with an investment in Coinbase in 2013.
Harrison continued, “As lawmakers and regulators continue to develop a US regulatory framework for digital assets, we expect crypto to play a much larger role in the broader financial landscape in 2022 and beyond. We’re excited to continue working cooperatively with them, and feel confident that FTX US will emerge as the leading US-regulated crypto spot and derivatives exchange.”
Investor Quotes “Paradigm has been fortunate to be an investor in FTX’s global business, and we are thrilled to invest in FTX US. The team is world class and their focus on great products and regulatory engagement will help ensure access to crypto for millions of Americans.” –Matt Huang, Co-Founder and Managing Partner of Paradigm
“The FTX US team is laying the groundwork to become the dominant trading platform in the United States for all things crypto: spot trading, derivatives, and NFTs.
U.S., all while maintaining strict compliance with existing regulations and supporting emerging regulations of crypto spot and derivatives markets.
Brett Harrison, President of FTX US, commented on the news, “FTX US scaled rapidly throughout the course of 2021, and our Series A valuation reflects both what we’ve concretely accomplished and what we’ve laid the groundwork for in 2022. We are thankful for all of our investors, many of whom have supported FTX from its founding, and look forward to working with them as we enter the next stage of our expansion.”
The funds will allow the Company to further grow its user base, bolster its derivatives efforts, and launch new business lines. FTX US also plans to leverage the Series A round to make strategic investments and acquisitions in key verticals and expand its network of partnerships.
Crypto american ftx.us 400m 8b paradigms
United States presence, and further establish itself as the largest crypto exchange in the USA.”
But in a nod to regulators, it claimed that it would be “maintaining strict compliance with existing regulations and supporting emerging regulations of crypto spot and derivatives markets.”
And it appears more crypto derivatives moves could come soon, with the company claiming its new funds will allow it “to further grow its user base, bolster its derivatives efforts and launch new business lines.”
M&A plans could also be in the pipelines, as the company explained:
“FTX US plans to leverage the Series A round to make strategic investments and acquisitions in key verticals and expand its network of partnerships.”
Meanwhile, West Realm Shires Services Inc., the owner and operator of FTX US, has announced today its business update for the 2021 calendar year.
Crypto american ftx.us 400m 8b paradigmatic
FTX US Gets USD 400M Boost to Compete With Coinbase, Binance, Kraken & Co in US
The crypto exchange heavyweight FTX’s subsidiary FTX US raised USD 400m in a Series A investment round that it says values the firm at USD 8bn and adds fresh capital to compete with other American exchange rivals such as Coinbase, Binance US, and Kraken.
The funding round “is the first for FTX US,” the exchange said. And it appears that many of the company’s backers are repeat investors, some of whom last year pumped a combined USD 900m into FTX US’s parent company FTX.
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The integration of LedgerX’s assets into FTX US allowed FTX US to offer crypto derivatives-based opportunities for retail and institutional investors and brought on the necessary regulatory licensing to permit those operations.
During the same month, FTX also launched FTX NFTs, a marketplace where users can mint, buy, sell and trade nonfungible tokens on the Solana blockchain. Ethereum-based NFT minting and trading capabilities were soon added in December.
NFTs are blockchain-based digital assets that represent the ownership of virtual items such as digital art, music, documents, securities and more.
The company’s users also jumped 52% quarter over quarter, and today the exchange has over 1 million users.
“FTX US scaled rapidly throughout the course of 2021, and our Series A valuation reflects both what we’ve concretely accomplished and what we’ve laid the groundwork for in 2022,” said Brett Harrison, president of FTX US.
Harrison added that the company would use the funds to continue its growth acceleration, expand its U.S. presence and maintain strict compliance with existing regulations surrounding cryptocurrencies and support emerging laws.
“As lawmakers and regulators continue to develop a U.S. regulatory framework for digital assets, we expect crypto to play a much larger role in the broader financial landscape in 2022 and beyond,” said Harrison.
In October, FTX US acquired LedgerX, which the company rebranded as FTX US Derivatives.
CHICAGO, Jan. 26, 2022 /PRNewswire/ — West Realm Shires Services Inc. (“FTX US” or “the Company”), today announced the closing of a $400 Million Series A round valuing the Company at $8 Billion. This funding round is the first for FTX US and saw participation from Paradigm, Temasek, NEA, Multicoin Capital, Tribe Capital, Ontario Teachers’ Pension Plan Board, SoftBank Vision Fund 2, Greenoaks Capital, Steadview Capital, and Lightspeed Venture Partners, amongst others.
The support FTX US has received from the participants in the Series A is demonstrative of its continued success since its inception in 2020. The round also cements the Company’s position as one of the highest-valued US-based exchanges.
The funds will allow FTX US to continue accelerating its growth, expand its U.S.
The NFT market reached approximately $41 billion in value by the end of 2021, according to the newest metric from blockchain data company Chainalysis.
“The NFT ecosystem has started to infiltrate pop culture, but has been lacking a platform that provides easy access and exposure to the mainstream audience,” continued Harrison. “With the FTX NFT Platform, we have the ability to provide simpler, safer and easier tools to remove the barriers to entry for that audience to enter the NFT space.”
This investment comes at a time even as Bitcoin and other cryptocurrencies suffered a slump in market values. Amid the reasons behind the slump is crackdowns across various nations and various other factors.
Banking investors have dubbed the price changes and volatility part of a coming “crypto winter,” and warned of further regulatory attention to protect investors.
Harrison said that one of the goals of FTX US would be to work cooperatively with U.S. regulatory agencies and “emerge as the leading U.S.-regulated crypto spot and derivatives exchange.”
On that path, FTX US still has some intense competition. Coinbase recently announced the acquisition of FairX, a regulated derivatives exchange, which it calls a “key stepping stone” in its own journey toward providing crypto derivatives to its customers in the U.S.
Image: FTX USA message from John Furrier, co-founder of SiliconANGLE:
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Sam and his team are among the most talented operators in a talent-dense space, combining generational technical skill, deep empathy for user needs, and extraordinary appreciation for and from the crypto community. We are excited to partner with them as they build out a best-in-class exchange in the United States, with a thoughtful approach to regulation that builds collective trust and works hand-in-hand with the government to shape an evolving landscape.” — Neil Mehta, Founder and Managing Partner of Greenoaks Capital
About FTX US FTX US is a US-regulated cryptocurrency exchange, built from the ground up.