Binance’s US Return Strategy: CZ’s Stake At Risk In Potential Recapitalization

Binance eyes a comeback in the US market—but founder Changpeng Zhao's control could be the price of admission.

The Regulatory Chessboard

Forget a simple re-entry. This is a high-stakes recapitalization play, a move that could dilute CZ's legendary stake in the exchange he built. Sources whisper the plan involves courting deep-pocketed institutional investors to fund the push, a necessary step to appease watchdogs still nursing regulatory headaches.

Stakeholders on Edge

The potential shake-up sends ripples through the crypto ecosystem. BNB holders watch warily—any shift in Binance's power structure could impact the token's trajectory. Meanwhile, competitors sharpen their knives, sensing an opportunity while the giant navigates its most complex maneuver yet.

The Finance Jab

It's the oldest play in the traditional finance book: use other people's money to solve your problems, then watch your own slice of the pie get smaller. Some things never change, even in crypto.

What's Next?

All eyes are on the deal structure. Will CZ accept a reduced role for a regulated future? Can Binance reclaim its throne with new backers calling the shots? One thing's clear—the path back to the world's biggest economy is paved with compromise.

Binance’s Path To Re-Establish US Operations

According to a recent Bloomberg report, Binance has been exploring options to restart operations for its American affiliate, Binance.US. This includes discussions of a recapitalization that could dilute Zhao’s majority stake, which has complicated the company’s efforts to expand in the country. 

At a recent Binance Blockchain Week event, Zhao expressed his commitment to transforming the US into a central hub for cryptocurrency, dubbing it “an emerging land for us.” 

His remarks came in the wake of a challenging period for Binance.US, which has seen its market share plummet from an impressive 35% to virtually zero since US regulatory bodies charged Zhao and the cryptocurrency exchange two years ago. 

Several states have also rescinded Binance’s licenses, while others, notably New York, never granted one in the first place. Supporters of the exchange believe that a forthcoming market-structure bill could establish a federal licensing regime, potentially altering the operational landscape for companies like Binance. 

However, Bitcoinist has continuously reported that the bill’s progress has stalled amid political divisions, casting doubt on its future. For now, the anticipated markup has been delayed until January 2026. 

The report suggests that if Binance were able to buy back some or all of Zhao’s holdings, it might consider new leadership and strategies to drive growth while leveraging political connections in Washington. Sources familiar with the situation emphasize a sense of urgency for the exchange to make critical decisions. 

Potential Partnerships With BlackRock 

In a separate effort to bolster its standing, the exchange is reportedly aiming for a closer partnership with BlackRock, the world’s largest asset manager and issuer of the largest Bitcoin exchange-traded fund (ETF) in the US. 

This relationship could involve the utilization of BlackRock’s tokenized money-market fund to support trades on Binance. Discussions regarding enhanced financial ties between the two have included the potential development of additional products and revenue-sharing opportunities.

Additionally, Binance is looking to strengthen its relationship with World Liberty Financial (WLFI), a crypto venture co-founded by members of the TRUMP family. 

These moves appear to have taken shape following Zhao’s pardon and signify the crypto company’s desire to recalibrate its presence in a more favorable political atmosphere.

To facilitate these efforts, Binance has promoted Yi He, Zhao’s partner, as a stabilizing force for the company. Over the past few months, she has assumed a prominent role, leading strategic initiatives and revitalizing Binance’s growth narrative. 

However, her elevation has sparked questions regarding the dynamics of power between her and Teng, the former regulator who has been instrumental in guiding the exchange’s outreach efforts.

At the time of writing, BNB, the exchange’s native token, is trading at $846. This represents a major correction of 38% over the past few months, following the cryptocurrency’s all-time high of $1,369. 

Featured image from DALL-E, chart from TradingView.com