Who Exactly Owns Binance US?

Binance US operates as an independent cryptocurrency exchange, registered as a legal entity within the United States. However, its origins and continued associations with the larger Binance exchange lead many to wonder – who exactly owns Binance US?

Ownership Structure

Unlike the main Binance exchange which is privately owned by founder Changpeng Zhao, Binance US has brought on board investments from various parties to establish itself as a regulated exchange.

Publicly available details on exact shareholdings are unclear but it is believed institutions own a majority stake:

"All of this combines to create a structurally sound, regulation-forward company that‘s built to last. We foresee Binance.US becoming a public company in the near future," said former CEO Brian Brooks. This indicates there are plans to take Binance US public through a traditional IPO.

So while Binance does own a piece along with providing technology resources, the exchange is controlled by US-based shareholders – putting it in a better position to navigate complex legal and compliance matters domestically.

Operational Control

Day-to-day operations are managed by the California-based BAM Trading Services. Resources and liquidity support are provided by the larger Binance ecosystem.

This arms-length relationship with Binance Holdings Limited gives Binance US freedom to run the exchange based on local requirements without interference. But they still enjoy the benefits of Binance‘s trading engine, wallet infrastructure, huge liquidity and cybersecurity resources.

"We work with them closely on ensuring that our technology is equivalent, that our cybersecurity standards are equivalent," said former CEO Catherine Coley.

So while deeply integrated with Binance technically, total control allows Binance US to chart its own direction.

Final Take

In conclusion, Binance US operates as an independent legal business entity subject to US regulations. But Binance maintains close ties both as a shareholder and technology provider, striking a balance between regulatory compliance vs leveraging Binance‘s established resources. This separation also paves the path for a potential IPO in the future.

Despite only launching in September 2019, Binance US has shown impressive growth in a short span to become one of the biggest crypto exchanges catering to US traders.

Trading Volumes

A key metric signaling adoption among crypto exchanges is trading volume – indicating total value transacted across the platform over a period.

Binance US has seen a steady uptick in 24-hour trading volumes since launch:

It now sits comfortably among the top 5 exchanges in terms of total US crypto spot trading volumes according to data from The Block:

These figures highlight the tremendous growth achieved by Binance US capturing significant market share in 4 years, already overtaking established players.

User Base

Available download figures also showcase steady adoption in the US:

• 2.1+ million mobile app downloads on iOS and Android

• 750,000+ monthly visits on the Binance US website

Considering the US population overall is just waking up to crypto adoption compared to other regions, this signals the growing prominence of Binance US among American crypto investors.

Public Interest

There is also heightened public interest and brand awareness as seen in Google search trends for relevant terms:

With trading activity, user base and interest reaching record levels, Binance US seems positioned to become the go-to platform for US crypto enthusiasts – thanks in part to its competitive fees and rising liquidity.

A discussion around Binance would be incomplete without analyzing the crucial role of Binance Chain and Binance Coin (BNB) which fuels much of its growth.

Binance Chain Explained

Launched in 2019, Binance Chain is a blockchain software system developed by Binance to host decentralized applications. It runs in parallel to Binance US and other Binance platforms.

Some of the key details regarding Binance Chain:

• Supports creation and issuance of digital assets and tokens
• Provides a decentralized trading marketplace where assets can be exchanged
• Uses a native token BNB for paying transaction fees

Binance Chain crucially powers the Binance DEX (decentralized exchange) allowing users to trade crypto directly wallet-to-wallet. This DEX currently processes trades over $1 billion daily according to DappRadar data.

BNB Use Cases

The native utility token BNB powers the Binance ecosystem including Binance US. Some key use cases:

💰 Pay trading fees on Binance platforms
🚀 Participate in ICO token launches
🗳️ Vote on community decisions
🔓 Unlock exclusive features and discounts

BNB tokens can be readily converted to fiat currencies or stablecoins demonstrating greater stability.

There is also an incentive system designed to increase BNB adoption – using BNB for fees gives users discounts over other coins. This creates organic demand.

The comprehensive Binance ecosystem interweaving with BNB tokens and public chain opens up growth avenues for affiliated platforms like Binance US as well.

Now that we have covered business operations and volumes, let us analyze some of the technical details regarding the trading systems as well as latest security improvements at Binance US.

Trading Engine Capabilities

Binance US utilizes industry-grade trading technology honed by the legions of expert developers and security professionals under the Binance umbrella.

Some key highlights:

Matching Engine: Custom-tuned powerful matching engine using optimized data structures benchmarks over 1.2 million orders/second. This enables real-time order matching for large trading volumes.

Throughput: Tested for throughput of 70,000/tps – easily handling peak demands during surges in activity.

Interfaces: User-friendly web interface, mobile apps (iOS, Android), REST + WebSocket APIs for algorithmic trading.

Coverage: Support and liquidity for 80+ coins and 160+ trading pairs – largest offering among US exchanges.

Thanks to these engineering capabilities borrowed from Binance, key pain points around latency, downtimes and stability are addressed – creating seamless trading UX.

Security and Compliance Upgrades

Binance has also been investing heavily in upgrading compliance tools and security infrastructure for its global subsidiaries including Binance US:

• Chainalysis know-your-customer and forensics tools adopted to screen transactions and fund inflows thoroughly in line with Anti-Money Laundering standards.

• Added over 100 team members in compliance adding capacity around fraud investigations and transaction monitoring leveraging automation.

• Leveraging AI to supplement manual reviews of Know-Your-Customer documentation for quicker verification while maintaining accuracy. Reduced verification times.

• Extended implementation of mandatory Universal 2nd Factor Authentication (U2F). 60-90 day password expiry policies introduced.

• Allocation of insurance fund through Asset Management arm to act as reserve against cases of breach. Fund grows in line with increase in asset holdings.

"We just keep improving the product," Changpeng Zhao said regarding compliance investments. "Part of that is continuously investing in security."

This focus on robust security, advanced forensics and customer authentication makes the platform resilient against potential bad actors while providing peace of mind.

No major exchange has been immune from criticism – Binance and Binance US too have faced their share of controversy and user complaints common to crypto networks.

Reddit Commentary

Scouring popular crypto sub-reddits reveals largely positive sentiment however some common pain points linger:

UI complaints: Some overload and confusion around the information-dense dashboards results in inadvertent mistakes for newer users.

"Their app UI is impressive but so convoluted. Too much info without distinction, too small fonts, illogical button placements etc."

Verification issues: Delays or frozen account issues when passing KYC checks causes friction especially for larger traders:

"I have been trying to get verified on Binance for a month now but zero response from support."

Restrictions on availability in certain states also rankles users:

"It makes no sense to restrict certain states due to regulatory uncertainty while allowing margin/leverage trading in other states."

While overall satisfaction seems high among traders who point to benefits around liquidity and choice of assets, these nagging issues exacerbate occasional negative experiences.

Twitter Complaints

Checking twitter for @BinanceUS reveals customers airing problems with frozen or closed accounts. However moderation team is quite responsive providing troubleshooting tips and raising tickets.

Overall the volume of vocal detractors seems relatively limited compared to disgruntled users on sites like Coinbase or Kraken. Support teams are also engaged to resolve queries.

Lawsuit Negativity

Above all, the uncertainty regarding the CFTC lawsuit and its settlement had a dampener effect on public trust as users expect exchanges to follow best practices around consumer protection.

However Binance US maintains it held user assets securely in bankruptcy remote custodial accounts throughout, preventing actual losses. Ongoing investments to upgrade compliance processes also showcase commitment.

Partnerships play a crucial role driving mainstream crypto adoption by integrating with existing traditional finance rails. Binance US too has been accelerating such partnerships.

Fidelity Integration

In 2022, leading financial services giant Fidelity Investments announced a partnership with Binance allowing Fidelity account holders to access crypto trading services.

Fidelity has 35+ million users managing more than $11 trillion in assets demonstrating tremendous reach. Its seal of approval brings immense credibility and visibility to Binance among institutional investors and wealth managers.

Bank Integrations

Leading bank Silvergate announced support for Binance USD bringing stability coin infrastructure to Binance US users:

"This connectivity will allow Binance.US customers to more efficiently fund accounts and provide another on-ramp to access digital asset markets."

Strategic integrations with traditional finance giants will continue to be key driving adoption of Binance US among the bulk of retail and institutional capital waiting on the sidelines.

Future IPO?

According to former CEO Brian Brooks, there are plans to take Binance US public to "provide transparency and regulatory oversight.” [Source]

This is not surprising considering the success of Coinbase‘s stock market debut. An IPO would allow retail investors exposure to this high-growth crypto exchange currently dominated by VCs along with providing impetus for greater transparency. There are also rumors of a Binance stock token in the works pegged to overall performance.

If Binance US does follow through on going public, it can revolutionize the amount of mainstream capital flowing into cryptocurrencies – while cementing Binance‘s position as the gatekeeper.

In closing, Binance US brings the powerful trading engine, liquidity depth and cybersecurity infrastructure of crypto leader Binance anchored within a US regulated framework. Backed by prominent VCs and crypto players, it bridges the gap between decentralized networks and institutional world.

Despite regulatory troubles faced by Binance globally, Binance US seems committed to compliance – continuing investments in upgrading monitoring tools. User growth signals American traders are flocking as they awaken to crypto allure.

Visionary initiatives around staking, NFTs and emerging use cases like Metaverse also showcase Binance US isn‘t resting on its laurels but hungry to innovate. Considering all these factors, Binance US seems destined to dominate the US crypto trading market for years ahead.