Binance.US Seeks Private Financing of Up to $100 Million with a Valuation of Approximately $1 Billion
Binance.US is advancing private financing, planning to raise up to $100 million with a target valuation of around $1 billion, aimed at expanding its U.S. operations amid intensified competition for digital asset clients. The scale of financing, valuation, and investor composition may still be adjusted.
The company was launched in 2019, operating independently from the global Binance platform, with Zhao Changpeng as a major shareholder of both companies. In 2022, it raised over $200 million at a pre-financing valuation of $4.5 billion. After Binance Holdings reached a settlement with U.S. authorities in 2023, Binance.US saw a significant loss in market share and is currently working to regain clients while competing with larger rivals.
The financing plan is in progress, and World Liberty Financial has been informed of the arrangements but is currently not participating. Spokespersons for Binance.US and World Liberty declined to comment. Earlier this year, the company appointed Stephen Gregory as CEO and has explored new business avenues such as prediction markets.
In terms of expansion plans, Binance.US is seeking to restore remittance licenses in certain states while discussing the introduction of external trading liquidity, potentially from the global Binance trading platform, though specific plans have yet to be determined. This move aims to rebuild deposit, withdrawal, and trading capabilities to re-attract U.S. users.
World Liberty has established contact with Binance. According to Arkham data, Binance holds most of the supply of its USD1 stablecoin. USD1 was previously used by an investment company linked to the UAE leadership to purchase a $2 billion stake in Binance.
This financing comes at a time when the regulatory environment for digital assets in the U.S. is becoming more favorable. Existing trading platforms are expanding their product lines, and foreign competitors are also seeking to grow their U.S. operations. Private equity funds are primarily flowing into client acquisition, license restoration, and liquidity supplementation, with Binance.US attempting to regain market share while facing direct competitive pressure from larger platforms and new entrants.
Source: Public Information
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Zhao Changpeng rapidly expanded into multiple markets through the global Binance platform after 2017, establishing Binance.US in 2019 to comply with U.S. regulatory isolation requirements. When the platform completed over $200 million in financing in 2022, it was valued at $4.5 billion, but after the global entity reached a settlement with the U.S. Department of Justice and Treasury in 2023, its market share in the U.S. quickly declined, forcing the platform to shrink its product and user base.
This private equity funding is primarily directed towards restoring state-level remittance licenses and accessing external liquidity. The licenses would allow the platform to resume fiat currency inflows and outflows, and if liquidity ultimately comes from global Binance, it could reduce market-making costs and enhance depth. The motivation is that after changes in the U.S. regulatory environment, the platform needs to supplement capital to rebuild its customer acquisition capabilities while maintaining resource synergy with the global entity.
Similar paths can be seen with Coinbase, which has continuously consolidated its U.S. market share through mergers and product expansion after going public in 2021, and Kraken, which has maintained operations through licenses and liquidity partnerships despite multiple regulatory investigations. Currently, Binance.US is in a phase of rebuilding its market share while facing product overlap from existing U.S. platforms and attempts by foreign exchanges to enter the market.
This essentially relates to regulatory changes. After the U.S. regulatory stance shifted, the barriers to entry and compliance costs for platforms decreased, allowing previously shrinking entities to seek capital and licensing resources again. Mechanically, regulatory easing has altered entry barriers and exit costs, enabling platforms that lost market share to re-enter the customer acquisition race at lower marginal costs, while capital preferentially flows to entities capable of license restoration and liquidity access.
ABAB News · Cognitive Laws
When regulations ease, those who lost ground are the first to rush back.
After losing market share, valuations must be re-priced.
The source of liquidity determines the survival line of the platform.