Funding round for Binance's US unit to close in a month or two

The United States unit of cryptocurrency exchange Binance expects to close its funding round in "about a month or two", the parent company's founder and chief executive Zhao Changpeng said yesterday.

Mr Zhao said on the last day of the Bloomberg New Economy Forum that Binance.US is raising "a couple hundred million dollars", but acknowledged that he does not know the exact figure.

He also noted that there is now a "playbook" for an initial public offering (IPO) in the US, given how rival cryptocurrency exchange Coinbase has listed.

"From an IPO perspective, it's better to have a few rounds of financing," he added.

Binance.US said in August that it was seeking at least US$100 million (S$136 million) in a funding round. Its parent company Binance is the world's largest crypto exchange, with several entities around the world, including its Singapore-based affiliate Binance Asia Services.

It is not clear if the parent company will list but Mr Zhao is not ruling anything out. "Binance.com is a much larger entity, and we also need to look at regulations in different parts of the world to see where to launch an IPO," he said.

He also noted that he is not involved in the day-to-day operations of Binance.US, adding that the only connection between the parent company and the US entity is that he chairs the US firm's board.

However, Binance.com provides the product and technology for Binance.US, he said.

Mr Zhao also disclosed during the session that Binance has decided on the set-up for its new global headquarters, but he was not able to make an announcement on the matter yesterday as the firm is still communicating with regulators.

It will be able to "publish the size" of this set-up shortly, he said.

Mr Zhao pointed out that there are a number of places that are "very pro-crypto", such as the United Arab Emirates, France and Singapore, but stressed that its headquarters may not necessarily be located there.

A version of this article appeared in the print edition of The Straits Times on November 20, 2021, with the headline 'Funding round for Binance's US unit to close in a month or two'. Subscribe