FTX Invests $100 Million in Banking App, Forges Strategic Partnership

FTX Ventures has invested $100 million in the public-traded banking app – Dave – which also announced forging a “strategic partnership” with West Realm Shires Services, the operator of FTX US.

As part of the deal, the US crypto trading arm of billionaire Sam Bankman-Fried’s exchange FTX will serve as Dave’s exclusive partner for cryptocurrencies and explore ways to introduce such payments into the banking app’s platform.

The Investment

According to the official press release, the two entities will work together to expand the digital assets ecosystem. The $100 million investment was made through a convertible note.

Dave is the latest fintech app that has joined the likes of Cash App, PayPal, Venmo to add crypto service in its offerings. Following the development, Jason Wilk, Chief Executive Officer of Dave, commented,

“This is an exciting milestone for our Company, our shareholders, and all Dave members. We believe blockchain technology has the potential to level the financial playing field across the globe. 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.”

Calling FTX US a pioneer in the cryptocurrency ecosystem, Wilk added that the company is eyeing a long-term relationship to enhance stakeholder value through digital assets. The US-based fintech app with more than six million members earlier received backing from Shark Tank billionaire Mark Cuban. Other well-known investors include Thomas Wesley Pentz (known professionally as Diplo).

FTX US President Brett Harrison said,

“We consistently look to align with companies that share our vision, have unique and disruptive business models, and can help drive widespread adoption of digital assets. Dave is a great fit as they check all three boxes.”

FTX’s Investment Arm

In January this year, FTX announced establishing a $2 billion venture fund to invest in up-and-coming cryptocurrency projects. The key is to foster the expansion of blockchain tech and Web3 adoption. The fund will focus on investing in multi-stage platforms and projects that offer funding as well as strategic support from FTX and its network of global partners.

The entire funding came from the exchange’s founder and CEO – SBF. Former Partner at Lightspeed Amy Wu was called on to lead the fund.