Binance US raises $200m in seed money at $4.5b valuation

Binance US, the US-based partner of cryptocurrency exchange Binance, has raised more than US$200 million in a seed round, which values the firm at US$4.5 billion.

Photo credit: Burdun / 123RF

The round, which is the company’s first external raise, saw participation from RRE Ventures, Foundation Capital, Original Capital, VanEck, Circle Ventures, Gaingels, and Gold House.

Binance US launched in 2019 as a separate entity after Hong King-based Binance halted its services in the US over regulatory challenges.

Brian Shroder, the CEO of Binance US, recently told TechCrunch that the company is not a subsidiary or affiliate of Binance but that it has links to the firm – Binance founder Changpeng Zhao is also the chairperson of Binance US. Shroder added that the company has legal and licensing agreements with Binance.com.

The US-based firm said that it has expanded its cryptocurrency offerings for both retail customers and institutional traders this year. It currently supports more than 85 cryptocurrencies and over 190 trading pairs.

To reach more customers, Binance US has rolled out its services in two new states in the country in 2022, bringing the total number of states it supports to 45.

Following the fundraise, Binance US plans to enhance its trading platform as well as develop and launch new products and services, among other initiatives.

“In under three years, Binance US has grown into a profitable business that is not only one of the largest and most technologically advanced digital asset exchanges in the United States, but in the world,” Shroder said in a statement.

See also: The tech mogul backing Binance’s Malaysia breakthrough

He revealed in the Tech Crunch report that Binance US is now targeting an IPO in the country in two to three years.

The firm has emerged as one of the largest digital asset exchanges in the country. The platform handles a 24-hour trading volume of US$306 million, according to CoinMarketCap. In comparison, rival exchanges FTX US and Coinbase handle US$197 million and US$3 billion of 24-hour trading volumes, respectively.