The CEO of crypto exchange Binance, Changpeng “CZ” Zhao, is discussing a possible acquisition of a stake in the company with a sovereign wealth fund, the Financial Times reported on Tuesday.
The FT reported that CZ believed the move could improve “awareness and relationships” with various government and regulatory bodies.
He did not say with whose fund the negotiations were taking place. “However, the ticket size involved will not be modest… it will not be a quick procedure,” he stated emphatically. When an insider contacted Binance, they were unable to provide a response promptly.
According to CoinGecko, Binance is the largest cryptocurrency exchange in the world in terms of trading volume. CZ, which has established businesses in the United Kingdom, Singapore, Canada, Japan, and Germany. It continues to be the company’s largest stakeholder. Investing in government money could indicate that Binance is developing international influence, which has caused some alarm among the cryptocurrency exchange’s CEO. However, it can also bind us to specific countries. We must exercise caution, though, because this is not the first time we have met with the sovereign wealth fund.
FT reports that Binance’s Singapore unit is supported by Vertex Ventures, a venture capital affiliate of Singapore’s government wealth fund, Temasek, which invests in blockchain technology. The Financial Times reported last week that CZ stated at the Bloomberg New Economic Forum that Binance had reached $170 billion. The company’s revenue has increased from $10-30 billion two years ago, with revenue levels hitting “billions of dollars.”
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