It has been reported that Dave said the investment would aid its strategy for future crypto-related initiatives, with FTX US serving as its partner for cryptocurrencies. Both companies said that they’re currently exploring ways to introduce crypto payments into Dave’s platform.
Brett Harrison, the President of FTX US, commented that it looks to align with companies that can help drive widespread adoption of digital assets, believing Dave was a fit in that regard.
Jason Wilk, the CEO 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.”
However, launched in January, FTX Ventures is the investment arm of FTX. It has a $2 billion fund to provide funding and support to companies in or interested in the crypto space, and states its mission is to “advance global blockchain and web3 adoption.” Dave is a fintech application based in the United States with over six million members. It provides users with a budgeting and credit building product and a cash advance service.
The report said that Dave is the latest in a series of payments apps looking to move into offering crypto services. Last March, PayPal rolled out support for crypto and, as recently as January, it intended to launch its own stablecoin. Venmo, owned by PayPal, also expanded support for crypto last August, allowing its credit cardholders to receive “cash back” rewards in cryptocurrencies.
Likewise, recently, PayPal changed its fee structure for crypto transactions across Venmo and its own app, moving away from percentage-based fees and introducing a flat-fee structure for crypto transactions under $200.
Thus, in February, Cash App, a mobile payment service founded by Bitcoin maximalist and Twitter co-founder, Jack Dorsey, revealed that the Lightning Network could be used to transfer Bitcoin through its app to anyone with a BTC address.