Mobile banking application Dave introducing a partnership with FTX US scores $100M funding from FTX US
Publicly traded mobile banking application Dave announced on 21st
March this year, about introducing a strategic partnership with the stateside arm
of cryptocurrency exchange FTX US to grant cryptocurrency payments service on
the platform. It additionally introduced a $100 million funding from FTX
Ventures through a convertible note, a type of short-term debt.
FTX Ventures is the latest fund to make investments in Dave. It will be an exclusive partner for any crypto offerings. In the statement, along with FTX US, Dave stated the funding would support its approach for future crypto-related initiatives, with FTX US serving as its accomplice for cryptocurrencies. Both businesses stated they’re presently exploring approaches to introduce cryptocurrency payments and different digital payments into Dave’s platform. As per a report in a blog post, Dave says FTX US will be its distinctive accomplice for cryptocurrencies.
FTX US President Brett Harrison commented that it appears to align with corporations that can assist power sizable adoption of digital assets, believing Dave was once a match in that regard. Jason Wilk, Chief Executive Officer of Dave, said “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.”
Other organizations working in the same area :
In February, Cash App, a mobile payment service founded by Bitcoin maximalist and Twitter co-founder, Jack Dorsey, printed that the Lightning Network should be used to switch Bitcoin thru its app to everybody with a BTC address. Last March, PayPal rolled out aid support for crypto, and at end of January, it was supposed to launch its very own stablecoin. Venmo, owned by PayPal, additionally improved assist for crypto closing August, permitting its credit score cardholders to obtain “cash back” rewards in cryptocurrencies. In recent months, PayPal changed its fee structure for crypto transactions using Venmo and its own app. Instead of percentage-based fees, it now charges a flat fee for crypto transactions below $200.
The other competitor of Dave in this area are apps like Cash App, Venmo, and Paypal all of which provide each crypto and fiat service—in the $8 trillion digital banking market.
The others organization invested in Dave consist of Capital One Ventures, Dallas Mavericks proprietor Mark Cuban, recording artist Thomas Wesley Pentz (also acknowledged as Diplo), and CODE Advisors founding associate Quincy Smith.
About FTX Ventures:
FTX Ventures was founded in January 2018 by MIT graduate Sam Bankman-Fried. FTX Ventures is the investing arm of FTX. FTX US is the exchange's American affiliate that gives cryptocurrency trading, an NFT marketplace, and charge offerings through FTX Pay. In this year in the month of January, it launched a $2 billion FTX Ventures fund to provide funding and information to organizations in or concerned in the crypto space. It states its mission is to advance blockchain and web3 adoption worldwide. Earlier this year, FTX announced that it had raised $400 million in a Series C funding round, giving the exchange $32 billion valuations.
Dave is based in Los Angele and was launched in 2017. It is a fintech app-based totally in the U.S. with over 6 million members. It presents customers with a budgeting and credit score constructing product, and money strengthens service. It is a publicly buying and selling online banking provider that presents monetary equipment such as debit cards, spending accounts, and budgeting tools and is recognized for its money boost features.
CBW - External Analyst