Binance.US seeks to raise $100 million at a $1 billion valuation to expand its U.S. crypto business.

BlockBeats news, October 16, according to Bloomberg, people familiar with the matter revealed that Binance.US is seeking to raise up to $100 million through a private financing round, targeting a valuation of approximately $1 billion, in order to expand its U.S. business amid intensifying competition for digital asset customers. The fundraising is still underway, and the final size, valuation, and investor composition may all be subject to adjustment.

The crypto project World Liberty Financial, co-founded by Trump, had been informed of this fundraising, but another person familiar with the matter said the project is not currently participating. Spokespeople for Binance.US and World Liberty both declined to comment.

Binance.US was launched in 2019 and operates independently of the Binance global trading platform, but Changpeng Zhao is a major shareholder of both companies. Binance.US previously raised more than $200 million in 2022 at a pre-money valuation of $4.5 billion. After Binance Holdings reached a settlement with U.S. authorities in 2023, Binance.US lost a large amount of market share and is now seeking to regain customers and compete with larger rivals. The company has also previously explored new businesses such as prediction markets.

On the expansion front, Binance.US is seeking to restore money transmitter licenses in some states and is discussing bringing in trading liquidity from external sources, with potential sources possibly including the Binance global trading platform, though no specific plan has been finalized. The company appointed Stephen Gregory as chief executive officer earlier this year.

This fundraising plan comes as digital asset companies seek to take advantage of a more favorable U.S. regulatory environment, with existing trading platforms adding products and overseas competitors also looking to expand their U.S. businesses. World Liberty has already established ties with Binance: according to Arkham data, Binance holds most of the supply of its USD1 stablecoin. USD1 was also used by an investment company linked to UAE leadership to purchase $2 billion in Binance equity.