Binance CEO and founder Changpeng “CZ” Zhao recently revealed that the US arm of the Binance cryptocurrency exchange plans to conduct an initial public offering (IPO) within the time frame of the next 3 years.
Key takeaways:
- In an interview with The Information, Changpeng Zhao said that the US counterpart of the largest cryptocurrency exchange in the market is looking to go public in the next three years.
- If everything goes according to plans, Binance US is hoping to follow in the footsteps of its main rival Coinbase, which has conducted its IPO earlier this year and reached an initial market cap of $85.8 billion on a fully diluted basis. At the time of this writing, Coinbase is trading at $278 per share.
- Binance was forced to launch a strictly American-focused cryptocurrency offering in the form of Binance US due to the increasing pressure from the US regulators in 2019. A year after the launch of Binance US, US-based residents were prohibited from using Binance’s global exchange.
- As of right now, Binance US is not accessible to residents of Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont, according to the exchange’s frequently asked questions (FAQ) section.
- According to the executive director of crypto exchange CEX.IO Konstantin Anissimov, every centralized crypto exchange is likely considering going public after seeing the success of Coinbase’s public market trading debut, he told Decrypt.
- Anissimov added that before Binance US successfully pull off a public offering it has to disclose audited financial statements and various internal documents and wonders wheter the world’s largest cryptocurrency exchange is prepared for such a level of
- Given the amount of regulatory scrutiny Binance underwent in the last few months, Anissimov adds, the US arm may be forced to “structurally and substantially disassociate” from the international Binance venture if it hopes to successfully launch an IPO within the planned time period of three years.
