The American subsidiary of the largest global crypto exchange, Binance has raised more than $200 million and reached a valuation of $4.5 billion, the first external funding since its commencement about two years ago.
Binance US blog informed that the investors in the round include VanEck, Circle Ventures and Foundation Capital.
Also joining these investors was Gold House, a non-profit community that focuses on countering anti-Asian hate, and Gaingels, which supports LGBTQ causes.
Binance plans to use the proceeds from the fund for its further marketing aspirations, while exploring more products and services, potentially through Mergers & Acquisitions. Binance aims to focus on low-cost crypto trades.
Of late as its rivals continue to up their marketing game, Binance’s fund raising too, doesn’t come as a surprise. Coinbase Global, for instance, launched ‘Namaste, India’ to host crypto and web3 community events in Bangalore.
Binance.US Chief Executive Officer Brian Shroder commented, “When you look at Coinbase retail users, on average, they are being charged 1.5%, sometimes up to 3%. For the same users transacting and trading on Binance. US, we are charging 0.1%.” The exchange further plans to educate people on the price differences.
It was during a meeting between Shroder (then an executive at Ant Group) and Changpeng Zhao, when the two gave a shot to an unrealized partnership between their companies.
As a result, he was promoted to the position of CEO of Binance after Brian Brooks unexpectedly resigned from the job months into his tenure.
Notably, Binance US is active in 45 states, and gets about 70% of trading volume from institutions. Retail investors paying higher fees form the major contributor of the revenue.
Binance US operates separately from Binance.com.
“Regulation is an opportunity for us,” Shroder said. “This is the first time we are going out and speaking to regulators with our own voice separate from Binance.”
Shroder further revealed the firm’s plans to focus on working towards regulatory discussions, be it at state, federal, or local levels.