On Wednesday, cryptocurrency exchange FTX US announced an $8 billion valuation after obtaining $400 million in its first investment round from investors including Japan’s SoftBank Group Corp (9984.T) and Singapore’s Temasek Holdings (TEM.UL).

According to the company, the Series A fundraising also includes investments from crypto investment firm Paradigm, Multicoin Capital, Tribe Capital, Ontario Teachers’ Pension Plan Board, Greenoaks Capital, Steadview Capital, and Lightspeed Venture Partners, among others.

“What this fundraising means to us is that we are formally establishing ourselves on the stage of the major rivals of cryptocurrency exchanges in the United States, and communicating to the world that we will continue to develop very swiftly,” said FTX US President Brett Harrison.

With the cryptocurrency market rising in size, topping $3 trillion in November, venture capitalists are increasingly wanting to invest in the industry.
According to the research company PitchBook, venture capital companies will invest $30 billion in cryptocurrency in 2021.

FTX US, situated in Chicago, was founded in 2020 by former Wall Street high frequency trading professionals and competes with top cryptocurrency exchanges Coinbase and Binance.

FTX US purchased LedgerX in October in order to expand into crypto futures and options trading.

According to the corporation, FTX US had an average daily volume of around $360 million in the third quarter. Its user base climbed by 52% quarter over quarter, yet the corporation has refused to reveal how many people it has in total.

FTX US stated that the cash will be used to expand its user base and develop new business lines, as well as to examine strategic investments and acquisitions.

It also intends to grow its 100-person team, according to Harrison, who formerly worked at Citadel Securities.

“We’re able to go out and be competitive and employ the greatest individuals because we have this funding,” he added.