Binance.US, the American arm of the world’s largest cryptocurrency exchange Binance, announced on April 6th the completion of its seed funding round, raising over $200 million. This round values the company at $4.5 billion, positioning it for a future initial public offering (IPO).
Key Investors and Funding Utilization
The funding marks Binance.US’s first external capital raise, with participation from venture capital firms RRE Venture, Circle Ventures, and asset management company VanEck. Proceeds will be allocated to:
- Enhancing its spot trading platform
- Expanding marketing efforts
- Developing new products and services
Corporate Structure and Market Position
Launched in 2019 and operated by BAM Trading Services, Binance.US operates as a legally independent entity from Binance despite licensing the latter’s matching engine and wallet technology.
Its primary competitor Coinbase currently holds a $40 billion market capitalization—nearly nine times Binance.US’s valuation. Binance.US CEO Brian Shroder revealed plans in March for a potential IPO within 2-3 years.
Cryptocurrency Exchange Landscape
Coinbase’s direct listing on Nasdaq in April 2021 has seen its stock price decline over 30% year-to-date, underperforming Bitcoin’s 3% dip in 2022. Analysts attribute this to:
- Heavy reliance on trading fees (unlike traditional brokerages earning interest)
- Q1 2022 trading volume plummeting 40% sequentially to $314 billion (D.A. Davidson)
Per CoinMarketCap, Coinbase ranks as the world’s second-largest digital asset exchange after Binance.
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FAQs
When was Binance.US founded?
Binance.US launched in 2019 as a separate legal entity from Binance, serving U.S.-based traders.
How does Binance.US compare to Coinbase?
While Coinbase dominates with a $40 billion market cap, Binance.US’s $4.5 billion valuation reflects aggressive growth plans including a forthcoming IPO.
What’s driving Coinbase’s stock decline?
Falling crypto trading volumes and reliance on transaction fees (vs. diversified revenue streams) have pressured its stock performance.
👉 Learn about IPO readiness for crypto firms
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