Institutional and corporate investors increased by 40% | Real Time Headlines

Cryptocurrency exchange Binance CEO Richard Teng told CNBC that the number of institutional and corporate investors joining the platform has increased by 40% this year Linlin in an interview Wednesday.

“Institutional allocation to cryptocurrencies is just the tip of the iceberg. It’s just the beginning because many institutions are still doing their due diligence,” Teng said on the sidelines of the Token2049 conference in Singapore. he Taking office as CEO in November 2023.

“So for ourselves, we’ve seen a significant increase in the number of institutional and corporate investors. This year alone we’ve seen a 40% increase in entry into that category,” he said. Teng did not name the specific companies or reveal their size.

The growth reflects how so-called big money is heating up Bitcoin and other cryptocurrencies now willing to work with exchanges Encountered U.S. investigation and received $4.3 billion settlement.

Billionaire Changpeng Zhao co-founder Former Binance CEO resigns last year as part of a settlement agreement. Zhao is still the major shareholderTeng said.

Teng noted how Binance has transformed from a founder-led company to one led by a board of seven directors — a structure he said regulators are more accustomed to.

Teng joined Binance in 2021 as CEO of the company’s Singapore operations. He previously served as Chief Executive Officer of the Financial Services Regulatory Authority of Abu Dhabi Global Market and Chief Regulatory Officer of Singapore Exchange.

Launched in 2009, Bitcoin paved the way for many other cryptocurrencies based on similar blockchain technology. The technology eliminates the need for third-party intermediaries by quickly creating a permanent and secure record of transactions between two parties.

After years of regulatory uncertainty, the U.S. approved the The first exchange-traded fund targeting the spot price of Bitcoin. In July, the U.S. allowed similar deals Ethereum Fundinganother cryptocurrency.

Teng said this regulatory clarity “will bring certainty to mainstream users.” He attributed Bitcoin’s all-time high earlier this year (over $70,000 in March) to “institutional influence.”

He noted how BlackRock CEO Larry Fink transitioned from Bitcoin skeptic to Bitcoin skeptic. It’s called “digital gold.”

The company and other traditional Wall Street investment firms such as Franklin Templeton have also issued ETFs for Bitcoin and Ethereum.

Franklin Templeton CEO Jenny Johnson told CNBC in May that Bitcoin’s rise at the time was due to “the first wave of early adopters.” she said she Another wave of “bigger institutions” is expected to emerge Buy crypto funds.

As of Wednesday afternoon Singapore time, Bitcoin was trading near $60,440.

Teng declined to reveal specific price predictions, but noted that cryptocurrency prices tend to “heat up” after Bitcoin’s 160 days. The technical event is called a “halving”. The last such event was in April.

As of Wednesday, Teng noted that the market was “nine days away from those 160 days.”

—CNBC’s Ryan Browne, MacKenzie Sigalos and Jesse Pound contributed to this report.