The US wing of Binance, the world’s largest cryptocurrency exchange by trade volume, has revealed plans to go public in the coming years following the footsteps of Coinbase. Effectively it means Binance US is planning to operate independently of its parent company in the coming years.
In the latest statement, Binance CEO Changpeng Zhao said that it is gearing up to launch an initial public offering (IPO) in 2024. He also said that they are already going to close a funding deal. “Binance.US is just going to do what Coinbase did,” Zhao said. According to Zhao, Binance managed to pull between $800 million–$1 billion in profit in 2020.
Recently, Binance has been facing the heat from various financial regulatory authorities. As such, the crypto exchange is strategically planning to localize operations and the move could be seen as a part of its strategy to offer more region country-specific services in the long run.
Earlier this year, US-based crypto exchange Coinbase, which is the world’s largest number of active users went public. It secured necessary permits from the US Securities & Exchange Commission and the SEC. Coinbase is a leading cryptocurrency in the US followed by Binance and Kraken. The rivalry between the three is evident. However, they are all trying to follow in the footsteps of Coinbase.
Binance is more of a retail-friendly and low-cost crypto exchange that offers multiple features to make the crypto trading experience more pleasant for its users. It caters to retail and private investors and has a very intuitive interface. The crypto trading platform is in fact operating in multiple jurisdictions across the globe and has a vast global presence.
While Binance has revealed its plans, it is going to be a bumpy ride. Binance has already been under scrutiny. However, recently it is taking measures to improve customer protection and ensure compliance with regulations.