Chime Bank has raised a record $500 million in a Series E round led by DST Global, the largest ever equity investment in a challenger bank, valuing the bank at $5.8 billion, a Chime spokesperson confirmed. 

The round, first reported by CNBC, was backed by General Atlantic, Iconiq, Coatue, Dragoneer and Menlo Ventures. The investment is the largest single round ever raised for a challenger bank, according to CB Insight, surpassing the $400 million raised by Brazil's NuBank. 

Funding will be used to expand its product line and double headcount by 2020, as well as open a new office in Chicago. The acquisition of other fintech firms is on the table as well. 

Chime's funding marks a considerable bounce back from a series of outages that left many of its 5 million customers unable to conduct transactions, the last outage occurring in mid October. The funding is also a shot in the arm for the critical gig economy segment, which has disappointed Wall Street with debacles from WeWork, Uber and others.