US-based digital banking app Dave has formed a strategic partnership with West Realm Shires Services, the parent firm of crypto exchange FTX US.
Concurrently, the digital banking platform also received a $100m investment from FTX Ventures, a $2bn venture fund.
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Dave will use the proceeds to accelerate its growth strategy and invest in new initiatives such as digital assets.
Under the tie-up, FTX US will act as Dave’s exclusive partner for cryptocurrencies and the firms are working to add digital asset payments into Dave’s platform.
Dave CEO Jason Wilk 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 position to enter the digital asset arena, explore new growth opportunities, and improve the member experience.
“FTX US is a pioneer in the cryptocurrency ecosystem, and we look forward to working with them long-term to enhance stakeholder value through digital assets.”
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. We see significant growth opportunities ahead for both of our companies and are excited to be working with Dave.”
Dave said that the $100m infusion was made pursuant to an unsecured convertible note, which carries an annual interest of 3%.
The announcement follows Dave’s merger with VPC Impact Acquisition Holdings III, a special purpose acquisition company.
The deal included a $210m PIPE investment from Tiger Global Management, Wellington Management, Corbin Capital Partners and Alameda Research.
