Binance US, the cryptocurrency exchange affiliated with the world’s largest cryptocurrency exchange, is now worth more than $4.5 billion after it raised over $200 million from a mix of VCs and crypto-native firms, including Circle Ventures, VanEck, and Foundation Capital.
The newly raised capital will be reportedly used by the exchange to improve its spot trading platform, develop a new suite of products, and support marketing and education initiatives.
- Binance US intends to use the first-round funding for its first marketing push, as reported by Bloomberg, while also expanding products and services, potentially through M&As. Additionally, the firm wants to emphasize low-cost crypto trades.
- Binance US CEO Brian Shroder revealed that the company planned to go public in the next two and three years.
- The CEO outlined that the organization he runs only charges retail investors 0.1% transaction fees, and they have contributed to the majority of the company’s growing valuation. In comparison, Shroder said, “Coinbase retail users, on average, are being charged 1.5%, sometimes up to 3%.”
- Binance US, available in 45 states and eight territories, now has 70% of the trading volume coming from institutions.
- Shroder also noted that the company saw regulation as an opportunity to directly communicate with watchdogs.
- Binance US operates separately from the global Binance exchange for complying with legal regulations in the US. It has been on a hiring spree, especially for risk and compliance staff, Bloomberg stated.
- FTX US, Binance US’ major competitor in the American market, also has similar plans, according to recent reports. Its valuation has soared to $8 billion after raising $400 Million in January.
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: