Binance US seeks $100M raise at about $1B valuation

What happened

Binance US has reportedly sought up to $100 million at a valuation of about $1 billion. The exchange would put that capital into its American business, and the reports mention prediction markets as one possible area of growth.

Bloomberg reported on Oct. 15 that Binance US is pursuing the private funding round as competition for American crypto customers increases. The report listed Coinbase, Kraken, Robinhood and Gemini as platforms in that competition.

The plan also covers prediction markets, a return to some state money transmitter licenses, and liquidity from outside providers, which could include the global Binance exchange.

World Liberty Financial reportedly declined to invest in the round despite its ties to the global exchange.

Why it matters

The $1 billion valuation in the talks is below the $4.5 billion pre-money valuation attached to Binance US's 2022 financing, which raised about $200 million.

The company is chasing U.S. market share. Chief executive Stephen Gregory set a 20% target and wants to regain share it once held by bringing retail traders back and improving liquidity. In April the platform added zero maker fees and taker fees of 0.02% or less across more than 250 spot pairs.

Regulatory approvals shape the plan. Gregory said the company planned to apply in August for designated contract market status from the Commodity Futures Trading Commission, and it had discussed permissions for derivatives and perpetual futures. The report called the CFTC step a planned application, not an approval.

The exchange also faces scrutiny. The Justice Department is probing whether it complied with the 2023 settlement, which required tighter anti-money laundering rules and external compliance monitors.

What the data shows

• Up to $100 million: the amount Binance US reportedly seeks to raise.
• About $1 billion: the reported valuation sought in the talks.
• $4.5 billion: the pre-money valuation from 2022.
• About $200 million: the amount raised in the earlier round.
• 20%: the market share target Gregory set for the U.S. platform.
• 0.02% or less: taker fees across more than 250 spot pairs, alongside zero maker fees.
• $2 billion: the MGX investment in the global Binance arm, made with the USD1 stablecoin.

Background

• Binance US raised about $200 million in 2022 at a $4.5 billion pre-money valuation.
• The global exchange reached a criminal settlement with the U.S. Justice Department in 2023, while the U.S. affiliate faced a separate civil case from the Securities and Exchange Commission.
• Abu Dhabi state-backed MGX invested $2 billion in the global arm last year using the USD1 stablecoin.

What is still unclear

• World Liberty Financial's decision not to invest leaves the round without a backer tied to the global exchange, which holds a large share of the firm's USD1 stablecoin supply.
• The Justice Department is still probing compliance with the 2023 settlement, so the regulatory backdrop is not settled.
• The CFTC filing was described as a plan rather than an approval.

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