By Caleb Monroe
Binance.US is reportedly lining up a private financing round of up to $100 million as it looks to reinforce its U.S. operations amid intensified competition in the digital asset space. The company is targeting a valuation of roughly $1 billion for the round, according to persons familiar with the matter.
The fundraising outreach included notifying parties such as World Liberty Financial - a firm co-founded by President Donald Trump - that the exchange is seeking capital, according to the same reporting. The move follows a period in which Binance.US lost a sizable portion of its market share after Binance Holdings Ltd. reached a settlement with U.S. authorities in 2023.
Launched in 2019, Binance.US operates independently from the global Binance exchange, though Binance co-founder Changpeng Zhao retains a substantial ownership stake in both businesses. In 2022 the U.S. arm raised more than $200 million at a pre-money valuation of $4.5 billion.
Executives at Binance.US are pursuing the new capital as part of efforts to regain footing against larger competitors in the U.S. crypto exchange market. The company has also explored potential new business lines, including prediction markets, as it looks for avenues to diversify its offerings and attract customers.
The timing of the fundraising coincides with a broader industry shift toward a more favorable regulatory environment in the United States, a dynamic that some digital-asset firms view as an opportunity to expand. Established exchanges have been introducing new products while offshore competitors intensify efforts to increase their U.S. presence.
As part of its U.S. expansion strategy, Binance.US is also working to reinstate certain state money-transmitting licenses. Restoring these licenses forms a component of the company’s broader plan to rebuild operations and service availability across jurisdictions where licensing is required.
The proposed valuation for the current round is substantially below the pre-money valuation reported in 2022, reflecting the challenges the exchange has faced in recent months. Binance.US’s fundraising initiative and licensing work highlight the company’s priority to stabilize and grow its U.S. business amid evolving market and regulatory conditions.
Summary
Binance.US is seeking up to $100 million at about a $1 billion valuation to strengthen its U.S. operations, recover market share after a 2023 settlement involving its global affiliate, and restore state money-transmitting licenses while exploring new product areas.
Key Points
- Binance.US is targeting a private funding round of up to $100 million at a valuation near $1 billion - impacting the crypto exchange and fintech sectors.
- The exchange lost significant market share following Binance Holdings Ltd.'s 2023 settlement with U.S. authorities and is attempting to compete with larger rivals.
- Regulatory and licensing actions - including efforts to restore state money-transmitting licenses - are central to Binance.US’s U.S. expansion strategy.
Risks and Uncertainties
- Uncertainty around regulatory approvals and the pace of restoring state licenses could affect the exchange’s ability to operate in certain U.S. jurisdictions - impacting the fintech and payments sectors.
- Recovering market share in a competitive environment is not guaranteed and depends on product rollout and customer acquisition - affecting digital asset exchanges and related market dynamics.
- Valuation compression from prior funding rounds signals investor reassessment of business prospects, which could influence future capital access and strategic options.
Disclosure
Reporting by Caleb Monroe.