Dave, a financial services app, announced today a new partnership with crypto exchange FTX US and an investment of $100 million from FTX Ventures. The deal will enable the platform to begin offering cryptocurrency services.
Founded in 2018 by MIT graduate Sam Bankman-Fried, FTX launched the $2 billion FTX Ventures fund in January of this year. At the same time, FTX announced that it had raised $400 million in a Series C funding round, giving the exchange a $32 billion valuation. FTX US is the exchange's American affiliate that offers cryptocurrency trading, an NFT marketplace, and payment services through FTX Pay.
Together with FTX US, Dave says it is exploring ways to introduce cryptocurrency and other digital assets to its platform. Launched in 2017, Los Angeles-based Dave is a publicly trading online banking service that offers financial tools such as debit cards, spending accounts, and budgeting tools. It's best known for its cash advance features. In the blog post, Dave says FTX US will be its exclusive partner for cryptocurrencies.
FTX Ventures is the latest fund to invest in Dave. Others include Capital One Ventures, Dallas Mavericks owner Mark Cuban, recording artist Thomas Wesley Pentz (also known as Diplo), and CODE Advisors founding partner Quincy Smith.
For Dave, partnering with FTX US to offer cryptocurrency services will position it as a competitor to apps like Cash App, Venmo, and Paypal—all of which offer both crypto and fiat services—in the $8 trillion digital banking market.
“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,” Dave CEO Jason Wilk said in the announcement.