Dave, a financial services app, has announced a new partnership with crypto exchange FTX US as well as a $100 million investment from FTX Ventures. The agreement will allow the platform to begin providing cryptocurrencies services.
FTX was founded in 2018 by MIT student Sam Bankman-Fried, and the $2 billion FTX Ventures fund was established in January of this year. Simultaneously, FTX stated that it had secured $400 million in a Series C fundraising round, valuing the exchange at $32 billion.
The exchange’s American subsidiary, FTX US, provides cryptocurrency trading, an NFT marketplace, and payment services via FTX Pay.
Dave, in collaboration with FTX US, says it is looking at possibilities to incorporate cryptocurrencies and other digital assets into its platform. The Los Angeles-based company was founded in 2017. Dave is an online banking business that is publicly traded and provides financial tools such as debit cards, spending accounts, and budgeting tools. It is most recognized for its cash advance capabilities.
Dave states in the blog post that FTX US will be its exclusive cryptocurrency partner.
FTX Ventures is the most recent fund to make an investment in Dave. Capital One Ventures, Dallas Mavericks owner Mark Cuban, recording artist Thomas Wesley Pentz (better known as Diplo), and CODE Advisors founding partner Quincy Smith are among those who have invested.
For Dave, working with FTX US to offer cryptocurrency services would position it as a rival in the $8 trillion digital banking industry to applications like Cash App, Venmo, and Paypal, all of which offer both crypto and fiat services.
Dave CEO Jason Wilk said in the announcement:
“By aligning with a world-class leader such as FTX US, we are in a position to enter the digital asset arena, explore new growth opportunities, and improve the member experience,”
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