Binance US Valued at $4.5B Following a $200M Fundraising Round

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.

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