Binance.US and FTX.US Reveal Strategic Plans as US Crypto Market Heats Up
FTX.US, the US affiliate of the crypto derivatives exchange FTX, has unveiled its acquisition of Ledger Holdings Inc, the parent company of LedgerX LLC for an undisclosed sum.
In addition, Binance.US targets an initial public offering (IPO) within the next three years, according to CEO Changpeng Zhao. However, prior to that, the company aims to close on a large private funding round within the next two months.
With a growing number of crypto firms seeking to expand their range of products and further adopt US regulations, the crypto market is heating up — particularly in the United States.
Binance US to Go Public in 2024
Binance.US, the US affiliate of the crypto exchange Binance, aims to go public via an IPO in 2024. Binance CEO and founder CZ said the company “is just going to do what Coinbase did,” adding that the company has generated somewhere between $800 million to $1 billion in profit in 2020.
Binance.US also aims to close on a large private funding round within the next two months. According to CZ, the fundraising would help the company in becoming more independent from Binance. Reports reveal that CZ holds a 90% ownership stake in Bianance.US, which is one reason to have kept investors away from the company.
Binance has been experiencing worldwide regulatory pressure recently. Reportedly, Binance.US expected to raise $100 million in a fundraising round. The company has ostensibly failed to do so due to regulatory concerns. However, the firm is determined in its decision to adopt regulations.
FTX.US Acquires Ledger Holdings Inc
FTX.US, the trading platform for FTX’s US-based users, has made its first acquisition, purchasing Ledger Holdings Inc for an undisclosed sum. Once the deal closes, which is expected to happen in October, FTX.US would be able to offer US clients a distinguished line of crypto products.
LedgerX, launched in 2017, is a CFTC-regulated crypto derivatives exchange. Brett Harrison, CEO at FTX.US, said LedgerX has raised approximately $35 million in funding to date and is a profitable company. He added:
“This acquisition marks a significant milestone for our rapidly growing US business and is a key part of our strategy to bring regulated crypto derivatives to our US user base. We believe the integration of our technological capabilities, product portfolio and large balance sheet with LedgerX will enhance our ability to provide innovative products to all US cryptocurrency traders.”
The crypto derivatives exchange FTX has been trying to promote crypto adoption by attracting mainstream recognition. So far this year, the company has inked several large partnerships in different fields, trying to draw people of all spaces into crypto.
US Crypto Space Increases in Competition
With crypto firms expanding their range of products, as well as major traditional stock brokerages and FinTech firms dabbling into crypto, the competition is starting to heat up.
The trading brokerage Robinhood enables 18 million of its users to buy and sell a number of digital assets through its app. While Robinhood doesn’t allow users to withdraw their crypto assets, the fact that it is a traditional brokerage firm plays an important role in promoting crypto adoption.
Giant electronic payment solution PayPal also offers crypto services. Starting in late 2020, the company enabled US customers to trade major cryptocurrencies. Recently, the company expanded its crypto offering to the UK, with goals to cover more geographies in the near future.
As a predecessor to PayPal, Jack Dorsey’s Square dabbled into crypto back in 2018. In January 2018, the company started offering users exposure to Bitcoin.
More recently, in early July, Lightning Network payments platform Strike revealed its plan to embrace Bitcoin. In an unprecedented move, the company revealed that it will allow US traders to buy Bitcoin with negligible fees — bringing competition to the next level.
Do you think Binance.US would be able to close a large funding round in the next two months considering that the firm is still under regulatory scrutiny? Let us know in the comments below.