Binance crypto

CZ: Crypto Exchange Binance US to Complete New Funding in 2 Months

Binance crypto

Cryptocurrency exchange Binance will have its U.S. arm go public in three years, says founder Changpeng Zhao (CZ). “Binance.US is just going to do what Coinbase did,” says CZ to The Information.

Binance.US targets an initial public offering (IPO) in the next three years. The world’s largest crypto exchange generated $800 million to $1 billion in profit last year, according to CZ. However, Binance has faced investigations and warnings from regulators across the world. Multiple regulators warn Binance that it is providing unlicensed asset trading activity.

Also, Binance.US is set to close a large private fundraising round in the next two months. CZ expects to reduce his control of the board after the funding round.

Lately, Binance is reportedly looking for government funding. Its Singapore arm plans to secure investment and protection from government funds at a valuation of $200 billion.

Binance Gets Backing from Singapore Govt?

Singapore’s authorities, like Temasek and GIC, are among the most likely options. In 2018, Singapore’s sovereign fund Temasek subsidiary Vertex Ventures invested in Binance Singapore, as Binance expanded operations into the city-state. Market expects Vertex Ventures to invest in Binance Global as well.

Moreover, Binance Singapore has Richard Teng onboarding as CEO. Teng previously served as a Director of Corporate Finance at the Monetary Authority of Singapore (MAS) for 13 years. He was also the Chief Regulatory Officer of the Singapore Exchange (SGX). In October 2014, he left SGX to join the Abu Dhabi Global Market (ADGM) as CEO.

Interestingly, Binance Global’s equity reportedly belongs to founder CZ and co-founder HeYi, with a ratio of 92:8. Also, CZ’s ownership of Binance.US is around 90 percent. The control of CZ over Binance.US has been a concern from potential investors including SoftBank.

Eventually, they backed out of a potential $100-million funding round. This also leads to the resignation of Binance.US CEO Brian Brooks.

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