The chances that Binance.US, the American arm of the Binance exchange, the largest in the world by trading volume, will be making its grand entry as a publicly-traded company through an IPO in 2023 are high.
In a recent interview to Binance Chief Executive Officer Changpeng Zhao by online media The Information, Binance.US is likely going to follow in the footsteps of Coinbase Global, the first crypto trading platform to go public via a direct listing in the US.
According to Zhao, popularly known on social networks as ‘CZ’, the firm’s US arm has an advantage over Coinbase as its transactions costs are about 5 times cheaper. “The users using Binance.US pay about one-fifth of the fees that they pay on Coinbase – so it’s about five times cheaper,” he said.
Going public is crucial to most companies and even marks an unprecedented milestone for firms like crypto exchanges. In the broad preparation for the move to conduct an Initial Public Offering (IPO), CZ noted that the US arm is on track to raise funds from investors, a move that he noted will reduce his influence on the board. The IPO plans are clearly outlined to follow the fundraising event, coming as early as the next two months.
“If the business can grow consistently over the next three years, then three years should be sufficient for an IPO, but if there’s a prolonged bear market for, I don’t know, maybe three or five years, then it may be a little bit longer,”
In recent times, the parent company has come under fire from regulators worldwide, including Malaysia, Germany, Japan, Hong Kong, and Singapore. While many claim Binance is operating illegally, the exchange has clarified its future plans to work with regulators in its bid to shift its operations from a tech startup to a fintech hub.
With the departure of Brian Brooks as the CEO of the US branch lately, CZ noted that a replacement amongst the firm’s senior staff might be confirmed in the coming weeks.
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