Cryptocurrency exchange Binance has seen a 40% increase this year in the number of institutional and corporate investors joining the platform, CEO Richard Teng said.
“Institutional allocations to crypto are just the tip of the iceberg. This is just the beginning, as many institutions are still in the due diligence process,” Teng said on the sidelines of the Token2049 conference in Singapore. He officially takes over as CEO in November 2023.
“We have seen a significant increase in the number of institutional and corporate investors. The 40% increase this year alone is a testament to that,” he said, without disclosing the specific names of the companies or their size.
This growth reflects how large institutions are increasingly friendly to Bitcoin and other cryptocurrencies, willing to cooperate with an exchange that was once subject to a US investigation and had to pay a $4.3 billion fine.
Changpeng Zhao, co-founder and former CEO of Binance, stepped down last year as part of the deal. Zhao remains a major shareholder, Teng said.
He also emphasized that Binance has moved from a founder-led company to an executive structure with a board of seven directors, which helps increase familiarity with regulators.
Teng joined Binance in 2021 as CEO in Singapore. Prior to that, he served as CEO of the Financial Services Authority of Abu Dhabi Global Market and managing director of Singapore Exchange, among other positions.
Bitcoin, launched in 2009, paved the way for many other cryptocurrencies based on similar blockchain technology, which allows for the creation of secure and permanent records of transactions without the need for intermediaries.
After years of regulatory uncertainty, the US approved the first spot Bitcoin ETF in January, and in July, allowed similar funds to trade for Ether.
Teng said regulatory clarity would provide certainty for mainstream users. He attributed Bitcoin’s record high earlier this year, above $70,000 in March, to “the impact of institutional participation.”
He also noted that BlackRock CEO Larry Fink has gone from being skeptical of Bitcoin to praising it as “digital gold.” Firms like BlackRock and Franklin Templeton have issued ETFs for Bitcoin and Ether.
Jenny Johnson, CEO of Franklin Templeton, stated in May that Bitcoin’s rise at the time was due to “the first wave of early adopters” and that she expected a larger wave from institutions in the future.
At the time of writing, Bitcoin was trading at $63,270. Teng declined to provide a specific price forecast, but he noted that cryptocurrency prices tend to “warm up” about 160 days after a halving event. The most recent such event was in April, and the market is now just nine days away from the 160-day mark.
