Binance, the largest bitcoin (BTC) and other cryptocurrency exchange in the market, is planning to launch an Initial Public Offering (IPO) for its U.S. subsidiary. The event could happen in 2024.
The IPO will depend on the company’s growth over the next three years. It could also affect the fact that it faces a prolonged bear market, then the goal of going public should move from three to five years, said
Changpeng Zhao, founder and CEO of the company in an interview.
Among other things, the executive indicated that Binance.US will follow in the same footsteps of the U.S. exchange Coinbase, when it hit the New York Stock Exchange.
Coinbase debuted on Wall Street through a direct listing last May. The value of the company’s shares reached around USD 400, as reported by
Zhao also expressed that Binance.US has an advantage over Coinbase. “Users using Binance US pay about one-fifth of the fees they pay on Coinbase, so it’s five times cheaper,” he said.
IPOs and direct listings are two mechanisms used by those companies that want to go public and trade shares.
In the case of IPOs, the mechanism chosen by Binance US, so far, new shares of the company are issued and then handled by brokers, investment banks, mutual funds or insurance companies, for example.
Binance is preparing funding
The executive also made it known that Binance.US has everything ready to conduct a “big” round of funding with private funds, within two months, which would reduce the power of the global exchange over the US subsidiary
Binance.US ranks seventh among exchanges with a daily trading volume of USD 1,100,000,000,000, while Binance manages a daily trading volume of USD 31,000,000,000,000, according to
CoinGecko. Both Binance and Binance US rank first and seventh among exchanges with the highest daily trading volume. Source CoinGecko.
It is worth remembering that Binance.US is a platform that is part of the group only for trading in the United States. It was created in 2019 to exclusively serve that market. Binance’s intention was to adapt to the rules of that country, given the difficulties that arose at the regulatory level.