Binance.US Valued at $4.5B, Closes $200M Seed Round
Investors in the funding round include VanEck, Circle Ventures, RRE Ventures and Foundation Capital
Source: Shutterstock
key takeaways
- Binance.US is looking into potential merger and acquisition opportunities, chief executive said
- With the capital, the company also plans to double the staff for its product and tech department
Binance.US, the United States partner company of cryptocurrency exchange Binance, secured $200 million in seed financing. The firm notched a $4.5 billion pre-money valuation, according to a Wednesday announcement.
“On the build side, we already have 100 people in our product and tech department. We will double that by the end of the year with this fundraising round,” Brian Shroder, chief executive of Binance.US, told Blockworks.
Investors in the round include VanEck, Circle Ventures, RRE Ventures, Foundation Capital, Original Capital, Gaingels and Gold House.
Binance.US, which launched in 2019, is a separate legal entity from crypto exchange Binance.com. However, the company can still access its technology through a licensing agreement with its partner company.
Binance banned US-based customers in September 2019 due to regulatory constraints. Via a partnership with BAM Trading Services, the company later announced the creation of Binance.US.
Users in approved states had to complete more stringent know your customer (KYC) rules to access Binance.US than Binance previously required. This includes uploading a photo of a valid ID and providing social security numbers.
Binance.US has expanded its services to 45 states and 8 territories since 2019 — most recently in Connecticut and Louisiana.
Per Shroder, the company is also “scaling up [its] corporate development department” and “evaluating potential mergers and acquisitions opportunities.”
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