Binance Will Retain Its International Dominance After U.S. Settlement: Bernstein

The deal also removes the final hurdle before approval of a spot bitcoin ETF, the report said.

AccessTimeIconNov 22, 2023 at 9:11 a.m. UTC
Updated Jan 26, 2024 at 3:00 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

While Binance experienced minor outflows of less than $1 billion following the news of the settlement with the U.S. government, there was no major panic from customers, and it remains the dominant crypto exchange internationally, with $67 billion of customer funds under custody, broker Bernstein said in a research report Wednesday.

“Binance’s reputation with retail non-U.S. customers has remained strong through the crisis,” analysts led by Gautam Chhugani wrote.

Binance will remain a “material entity in non-U.S. markets,” but Bernstein says it expects increased competition from the likes of listed rival Coinbase (COIN) and new exchanges in regulated markets such as Hong Kong and Singapore.

Bernstein says the crypto exchange has adequate funds to settle the $4.3 billion fine while maintaining healthy operations.

“Binance’s complete exit from the U.S would mean continued dominance of onshore and incumbent exchanges in the U.S.,” the authors wrote, noting that asset managers who have filed exchange-traded fund (ETF) applications are already working with exchanges such as Coinbase for prime broking and custody.

“In our view, this is the final straw before the establishment feels comfortable to approve a regulated bitcoin ETF,” they wrote.

Crypto services provider Matrixport says that while the plea deal does not include the Securities and Exchange Commission (SEC), it is a very favorable outcome for Binance founder Changpeng "CZ" Zhao and the company itself, and the firm will likely remain a top-three exchange in the near term.

“With this plea deal, the expectations for a spot bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow,” wrote Markus Thielen, head of research at Matrixport, referring to traditional finance.

Edited by Sheldon Reback.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Author placeholder image

Will Canny is CoinDesk's finance reporter.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about