FTX Ventures bets $100M on financial services firm Dave

FTX Ventures bets $100M on financial services firm Dave

By Sam Grant - min read
The FTX estate plans to start distributions in early 2025
  • FTX.US will be the official crypto partner of Dave as part of the sealed strategic partnership
  • The exchange will also guide the firm's entry into the digital assets space

Crypto exchange FTX via its venture capital arm FTX Ventures has invested $100 million into Dave, a mobile banking company. This goes along with the ongoing payment industry's wave towards a focus on systems that support crypto products.

Even firms such as MasterCard and Visa that have previously dealt with legacy payment systems have launched initiatives to facilitate payments via crypto assets. PayPal and its Venmo platform added support for crypto last year, while JackDorsey's Cash App allows US users (bar New York) to send BTC via the Lightning Network.

FTX.US will help Dave enter the digital asset space

According to a news release by Dave, a strategic partnership will be formed between the parent company of FTX.US, West Real Shires Services, and the banking platform following the investment. The payments platform said it would use the fresh resources to improve the user's experience by investing in future endeavours, including inroads into crypto.

FTX.US will be Dave's exclusive crypto partner, facilitating the banking app's introduction of virtual assets to customers on the platform. This will go a long way in reducing the distance between the US-based fintech app and competitors offering an array of crypto-related services such as SoFi.

"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. […] We look forward to working with them long-term to enhance stakeholder value through digital assets, " said Jason Wilk, the CEO of Dave.

FTX exchange keeps on growing

The financial services app already has some heavy-weight investors, including FTX CEO Sam Bankman-Fried, whose Alameda Research invested in Dave's pre-IPO. Dallas Maverick's owner Mark Cuban and venture capital firm Capital One are also on the investors'' list in the company.

FTX remains one of the fastest-evolving exchanges in the world today. After gaining approval in Dubai last week, the multi-billion valued firm launched an Australian subsidiary – FTX Australia – yesterday. Further evidence of this growth; it raised $400 million in January, the same month during which the $2 billion FTX Ventures was announced.