Building reliable onramps for new investors is key to growing the U.S. crypto market, and bringing cryptocurrencies into the mainstream. Increasingly, investors are looking at centralized exchanges as a reliable and frictionless way to convert their fiat currencies into coins.
Fundamental Labs has made a $20 million investment in Binance.us, the U.S. version of the Binance trading platform that has faced regulatory issues in countries including the UK, Fundamental managing partner Henry Love told Roundtable at the Bitcoin 2022 conference in Miami Beach.
The investment is part of a $200 million series C round aimed at expanding the exchange’s offering in the U.S. Currently Binance.us offers investments in more than 85 crypto currencies. Binance’s international platform, which is closed to U.S. investors, offers over 600 financial products.
Love said Binance’s position as one of the largest cryptocurrency exchanges in the world by volume, and its efforts to win regulatory approval in other jurisdictions, offer vast room for growth, and should help spur interest in cryptocurrency investing
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“What I hope to see is a lot of education and a lot of low-risk products that they offer for people to enter into the space for the first time,” said Love. Fundamental invested in online crypto exchange Coinbase in 2018, before the company went public. “They are also doing the same, they're educating, they're bringing new people into the crypto world,” said Love.
As American investors have become more interested in crypto, Love said, “to have a reputable, very strong track record exchange coming in to provide services that's trustworthy to more people, I think that's how we grow.”
Henry Love, Managing Partner, Fundamental Labs