FTX Ventures, a subsidiary of major cryptocurrency exchange FTX, has reportedly agreed to invest $100 million in Dave, a financial technology startup. The deal would see FTX Ventures take a significant stake in the fintech firm, which has gained strong traction since its launch in 2019.
The arrangement allows Dave to access additional funding as it moves forward with its next phase of growth, which includes launching a subscription-based consumer financial service. With the new infusion of funding, Dave will be in a better position to take on its competition and increase its user base.
From FTX’s perspective, the investment is an opportunity to diversify and gain exposure to additional financial technology companies. It’s also a chance to gain a better foothold in the fintech industry, as it seeks to expand its presence in the world of finance.
The deal comes amid an increased focus on bankruptcy moves in the cryptocurrency industry. Though FTX is primarily known for its crypto trading operations, the company’s venture arm is now demonstrating its ability to invest in more traditional businesses. The Dave investment marks FTX’s foray into the world of fintech, and it could be just the beginning for the digital asset company.
