FTX Launches Program To Assist Chicago’s Underbanked Communities

The US subsidiary of Bahamas-based crypto exchange FTX has opened up office in Chicago and plans to launch a program aimed at helping the city’s underbanked citizens.

Some of the top exchanges, trading businesses, hedge funds, fintechs, and venture capital firms are situated in Chicago, according to FTX.US President Brett Harrison, making it an ideal — if competitive — area for recruitment.

Residents in the city’s less affluent Austin, Englewood, and West Garfield Park areas would benefit from the company’s financial relief and economic mobility.

In a one-year program, FTX.US will join with the nonprofit group Equity and Transformation (EAT) to provide 100 Chicago residents with $500 per month in supplemental income, financial literacy instruction, a no-fee bank account, and a Visa debit card.

The move comes after FTX.US raised $400 million in a Series A round in January, valuing the company at $8 billion.

The Chicago Resilient Communities Pilot, a $31.5 million commitment from the city to tackle widespread poverty, is the foundation for the effort.

According to Samir Mayekar, Chicago’s deputy mayor of economic and community development, the initiative, which gives 5,000 Chicagoans with $500 each month for a year, is the country’s largest municipal financial aid program.

Mayekar said:

“To be focusing truly on making their products and services accessible to those in need in Chicago, it’s a very innovative way to feature some of the unique benefits of blockchain technology in a way that can make a difference on the ground here in neighborhoods,”

A research study will be conducted by an academic partner to look at the impact of the monthly $500 payments and financial inclusion services on residents’ financial stability and economic mobility.

Moving forward, FTX and the city are working on a new program that will focus on ways to help Chicago residents with international remittances, which might begin before the end of the year.

According to Mayekar, Chicago is a “immigrant-friendly” city, with many inhabitants sending money to relatives in other countries. He went on to say that such transactions can cost up to 20% in fees.

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