Bernstein Report: Binance Will Remain the Top Global Crypto Exchange Despite DOJ Settlement
Binance , the world’s largest crypto exchange, is expected to maintain its position as the dominant global exchange, even after reaching a settlement with the U.S. Department of Justice (DOJ).
According to a research report by broker Bernstein, Binance experienced minor outflows of less than $1 billion following the news of the settlement, but there was no significant panic among customers.
Currently, Binance holds approximately $67 billion of customer funds under custody.
Analysts at Bernstein, led by Gautam Chhugani, highlighted that Binance’s reputation with retail non-U.S. customers has remained strong throughout the crisis.
Despite the settlement, Binance is expected to remain a “material entity in non-U.S. markets.”
However, the report also anticipates increased competition from rivals such as Coinbase and new exchanges in regulated markets like Hong Kong and Singapore.
Bernstein believes that Binance has adequate funds to settle the $4.3 billion fine while maintaining healthy operations.
The research report suggests that Binance’s complete exit from the U.S. market would lead to continued dominance of onshore and incumbent exchanges in the country.
It also noted that asset managers who have filed applications for regulated bitcoin exchange-traded funds (ETFs) are already working with exchanges like Coinbase for prime broking and custody services.
On Tuesday, Binance, along with its CEO Changpeng Zhao, pleaded guilty to criminal charges related to anti-money laundering and violations of US sanctions.
The plea was made as part of a comprehensive agreement reached with the US Department of Justice, allowing the company to continue its operations.
However, Zhao will step down as CEO, and Binance
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