According to a research report from the brokerage firm Bernstein, Binance is likely to uphold its international dominance following its settlement with the U.S. government. The report cited insignificant customer panic and less than a $1 billion outflow ensuing the announcement. Moreover, the global cryptocurrency exchange is stated to have custody of $67 billion in customer funds.
The report, authored by Gautam Chhugani-led analysts, denotes Binance's maintained rapport with non-U.S. retail customers. While the company is anticipated to remain a significant entity in non-U.S. markets, challenges from rivals like Coinbase, along with emerging exchanges in regulated markets such as Hong Kong and Singapore, are expected.
The analysis also suggested Binance to have adequate funds for the settlement of a supposed $4.3 billion fine while ensuring smooth operation. The analysts stipulated that the full U.S. exit of Binance signifies the continued dominance of onshore and incumbent exchanges within the U.S.
The report underscored asset managers filing for exchange-traded fund (ETF) applications are already engaging with exchanges like 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," the analysts predicted.
