Binance Holdings Ltd., Maltese crypto trading platform, made its debut in business services by announcing its cloud operation which would allow business clients to set up their own crypto exchange.
Binance’s clients will be able to use its technological infrastructure, including matching engines to risk controls and data security systems to start their own exchange.
Tech giants like a Amazon.com Inc. and Alphabet Inc. have similarly evolved beyond their core consumer services and grown as cloud providers. Binance envisions the same path and success in crypto. Co-founder and CEO Zhao Changpeng estimates that Binance Cloud will become the biggest source of revenue for the company in five years
Co-founder and CEO, Zhao Changpeng, commented:
Theoretically speaking, we can let anyone in the world create their own exchanges, and the demand is huge. Even during the crypto winter of 2018 and 2019, hundreds of new exchanges popped up every day.
The cloud department started just three months ago and has reached nearly 20 people. Like other crypto trading platforms, Binance’s earnings come from transaction fees, subject to wild fluctuations with crypto prices. The change of course into the cloud service business can bring a steadier revenue stream.
The crypto trading platform started in 2017 and quickly gained momentum by handling only Bitcoin and Ether. The cryptocurrency dealing allowed Binance to avoid dealing with banks and government regulators in the beginning. Now the company is trying to change this image as it aims to appeal to a larger client base. Binance has set up regulation-compliant exchanges already in Singapore and Jersey.
Binance rival Huobi already launched its cloud operation back in 2018 and has since singed partners like Russia’s VEB Bank and Taiwan’s Chi Fu Group.
The first fiat exchanged powered by Binance’s own cloud services will be announced in the following weeks and has already confirmed four other clients in the lineup.