Published: 06.04.2022
Article reading time:
2 minutes.
US crypto exchange Binance has completed a new round of funding, reaching a market valuation of $4.5 billion for its business.
Binance.US, the American division of one of the largest cryptocurrency exchanges Binance, completed an external funding round that included Circle Ventures, VanEck, RRE Ventures, Original Capital and Foundation Capital. During the round, the company managed to raise $200 million and reach a preliminary valuation of $4.5 billion.
The funds raised will help Binance.US quickly expand its spot trading platform, add new features and products, and implement new consumer education projects. The firm is currently exploring a variety of new products and services with a view to bringing them to market in the future, the company said. All of this comes amid an investigation by the U.S. Securities and Exchange Commission (SEC), which is trying to link Binance.US to two trading firms Sigma Chain AG and Merit Peak.
According to the company’s CEO Brian Shroder, over the past three years, Binance.US has become a profitable business and is not going to stop. The company intends to further expand its work in the US and start advertising activities. It currently operates in 45 states. However, in states such as Idaho, New York, Hawaii, Vermont and Texas, the company’s services are still unavailable.
The main competitor of Binance.US in the United States at the moment is the Coinbase and FTX exchange. Currently, the company’s trading volume on the spot market is only one-tenth that of Coinbase’s trading volume.
Recall that in September last year, US regulators launched a large-scale investigation into the activities of Binance.US, exploring the possibilities of insider trading. According to regulators, the company’s employees could use their position to make a profit.
Source: Bits
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