Crypto Exchange Binance.US Raises $200 Million Worth $4.5 Billion

Binance.US, the American franchise of, the world’s largest cryptocurrency exchange led by billionaire Changpeng Zhao, has raised a $200 million funding round. Although the company was launched in 2019, this is the company’s first external funding, and it gives the 2.5-year-old company unicorn status with a valuation of $4.5 billion.

Investors include RRE Ventures, Foundation Capital, Original Capital, VanEck and Circle Ventures. The company has also tapped companies that are explicitly focused on diversity and inclusion, such as Gaingels and Gold House, as part of an effort to promote the goals of equality and financial opportunity in crypto for all.

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Binance.US CEO Brian Shroder, who was named CEO after the short-lived four-month tenure of his predecessor Brian Brooks, a former acting Comptroller of the Currency, expressed pride in how the turnaround has gone. built and what it portends for the future of Binance.US. “When you look at the general research on who is actually using crypto, it disproportionately skews people of color, LGBT, and Latinos. This is precisely why, during this fundraising, we prioritized the inclusion of mission-driven funds in our capitalization table.

Binance.US offers spot trading pairs against 72 crypto assets, as well as an OTC desk and other institutional services such as trading APIs. It has licenses to operate in 45 states and plans to be available nationwide by the end of the year.

Click on here to read the Forbes ranking of the top 60 crypto exchanges in the world.

The funds come at an opportune time for the company, as the venture capital industry remains extremely foamy for crypto companies despite the market’s slow start to the year. Even after the rally in March, the total crypto market capitalization still lost more than $100 million in 2022. Still, venture capital firm Paradigm raised a $2.5 billion fund in November, Haun Ventures recently raised $1 billion for its first fund, and Andreessen Horowitz is rumored. to shut down a massive $4.5 billion fund.

The increase will also help the company grow its workforce, which has doubled since Schroeder joined the company to over 350, bolster its marketing budget and iterate on new products that have become popular such as finance/ decentralized lending (DeFi), offering an NFT store, providing staking services that allow investors to earn passive income akin to interest payments on certain holdings.

However, Shroder isn’t just looking to copy what others are doing. He says that while the company is investigating all of these opportunities, the company is exercising caution to ensure that it offers top-notch service.

“The question we’re asking ourselves is how do we do something better, faster, cheaper and with a better customer experience, because I’m not interested in just offering a follow-up service. When we start something, we’re going to do it because we want to be the winners. »

As Binance.US plans to put those funds to work, competition continues to tighten, especially in US market leader Coinbase, which went public last April via the largest direct listing in history, has dealt $3.9 billion in spot volume in the past 24 hours and in 2021 made $3.6 billion in net profit on $7.3 billion in revenue. Conversely, Binance.US processed $384 million. Coinbase is also making significant progress in diversifying its revenue from trading fees to subscription services such as custody, which are relatively expensive, especially for retail traders.

For example, a basic transaction on Coinbase can cost up to 2.99% while Binance.US only charges 0.1%. In fact, RRE Ventures cited this pricing advantage as a key reason for participating in the round. However, while the fee structure may provide Binance.US with a substantial pricing advantage for retail and low-volume traders, it also forces the company to spread these lower fees over a much wider customer base or source additional revenue to achieve similar levels of financial performance. The company is profitable, but Shroder declined to give specific financial numbers or concrete customer numbers, saying simply that the company has millions and millions of customers.

Additionally, new ventures like and FTX.US, the US arm of, the Bahamas-based exchange run by fellow crypto billionaire Sam Bankman-Fried, are gaining notoriety and building a trading base through to massive nine-figure endorsement deals. . In November, paid $700 million for the naming rights to the building formerly known as Staples Center and FTX signed celebrity endorsers including Tom Brady, Stephen Curry, David Ortiz, Naomi Osaka and Kevin O. ‘Leary.

As part of this increase, Binance.US will add two additional members to its three-person board of directors. One will be hired to represent seed investors and the other will be an independent. CEO Changpeng Zhao remains on the board.

Looking ahead, Shroder mentioned the strong possibility of announcing follow-on strategic investors in the coming months. It has also publicly targeted an IPO in 2024/2025 based on Binance.US performance and market conditions.

Note: Binance plans to make a major investment in the parent company that will own Forbes following the public listing transaction previously announced by Forbes.

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Crypto Exchange Binance.US Raises $200 Million Worth $4.5 Billion

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