Hong Kong-based crypto exchange FTX raises $900m
FTX, a Hong Kong-headquartered cryptocurrency exchange, has raised $900 million in Series B funding at a valuation of $18 billion, up from $1.2 billion on closing the Series A last year.
More than 60 investors took part in the round, described as one of the largest for a crypto business globally. They include mid-market PE player Thoma Bravo and growth-stage tech specialists Bond and Altimeter. Representing the US VC community were Paradigm, Sequoia Capital, Ribbit Capital, Insight Partners, Lightspeed Venture Partners, and NEA.
Additional commitments came from crypto investment specialists Coinbase Ventures, Sino Global Capital, and Multicoin, as well as from SoftBank. Several hedge funds and asset managers number among the other backers, with some hedge fund managers investing directly or via family offices.
It continues a rich vein of investment activity involving Hong Kong crypto start-ups. Earlier this month, Animoca Brands, a gaming company focused on blockchain-based non-fungible tokens (NFTs), raised $188.9 million – across two tranches – at a valuation of $1 billion. Meanwhile, crypto financial services providers Amber Group and Babel Finance secured $100 million and $40 million, respectively.
FTX has its main office in Hong Kong, but the company is domiciled in Antigua and operates globally. It was founded in 2019 by Sam Bankman-Fried (pictured, right), who also serves as CEO.
The company has emerged as one of the world’s leading crypto exchanges, with over one million users, including retail and crypto-native investors, day traders, family offices, and institutional players. Its average daily trading volume of more than $10 billion. Revenue has increased 10x this year and 75x since the Series A closed in mid-2020.
FTX offers derivatives, options and volatility products, tokenized stocks, prediction markets, leveraged tokens, and an over-the-counter (OTC) desk. The new funding will support expansion initiatives, according to a statement. These include building out the partner networks for the company’s merchant payment, backstop liquidity, and NFT business lines.
"In less than two years, Sam and team have built a unique company and culture centered around staying nimble and putting their customer first. These tenants, along with a product-led approach, have propelled FTX into a top global crypto exchange,” said Nick Shalek, a general partner at Ribbit.
“However, we don't see it stopping there. As crypto becomes more ubiquitous, FTX has the opportunity to build a next-generation financial services brand, spanning exchange, payments, and many other categories to come.”
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.