Former Binance.US CEO’s New $20M Venture, 1Money, Targets Fast Stablecoin Payments

Former Binance.US Boss Secures $20 Million for New Company
– Brian Shroder launches 1Money with $20 million in funding
– Focus on stablecoin network for fast payments
– Departure from Binance.US amid SEC legal battle
Brian Shroder, the former CEO of Binance.US, has secured a significant $20 million in funding for his new venture, 1Money. The investment comes from prominent investors Tribe Capital and Galaxy Ventures. Shroder’s goal is to revolutionize the payment landscape with a new stablecoin network designed for lightning-fast transactions. Stablecoins are cryptocurrencies that aim to maintain a stable value, often pegged to a currency like the US dollar, providing a less volatile alternative to other cryptocurrencies.
This significant investment comes on the heels of Shroder’s high-profile exit from Binance.US in September 2023. His departure was amid a legal fight with the U.S. Securities and Exchange Commission (SEC), which alleged that Binance.US was operating an unregistered securities exchange. Despite these challenges, Shroder is launching a bold new initiative in the burgeoning stablecoin sector. 1Money plans to launch its network later this year, focusing solely on stablecoin payments without the distraction of a native cryptocurrency—a term used to describe a cryptocurrency created specifically for a blockchain network.
The timing couldn’t be better for Shroder’s new venture. Stablecoins are gaining popularity in the crypto world, with Tether boasting a market cap of $137 billion and USDC not far behind at $46.3 billion. Analysts at Bernstein are betting big on the market, predicting it could grow to $500 billion by 2025 after a nearly 60% jump last year. Shroder is tapping into a lucrative opportunity, aiming to solve real-world payment problems with the power of blockchain technology.
Shroder’s vision for 1Money goes beyond riding the stablecoin wave. He told the Wall Street Journal:
It was exciting for him to look for new solutions to existing payment problems.
Imagine a world where your payments are as fast as a lightning bolt – that’s what Shroder aims to achieve with 1Money.
As we watch this space, it’s clear that Shroder’s journey from Binance.US to 1Money is more than just a career pivot. It’s a testament to the resilience and innovation that define the crypto industry. With regulators like the SEC keeping a close eye, and the stablecoin market poised for explosive growth, 1Money could be the next big thing—or a bold experiment in an evolving financial landscape.
However, while we’re all for shaking up the status quo and embracing decentralization, let’s not forget the challenges ahead. Stablecoins aren’t without their risks, such as maintaining the peg to the underlying asset and facing scrutiny from financial regulators. Navigating the regulatory minefield will be no small feat. But if anyone’s up for the challenge, it’s Shroder. The potential for 1Money to contribute to broader goals of decentralization and privacy in finance is significant, though Bitcoin maximalists may have reservations about the rise of stablecoins.
As the stablecoin market continues to grow, innovations like 1Money could shape its future. The focus on fast payments could impact industries like remittances or e-commerce, offering new ways to transfer value quickly and securely. Yet, the crypto space is rife with projects promising the moon, and it’s crucial to temper our optimism with a healthy dose of skepticism. Not every project will succeed, and the road ahead for 1Money will undoubtedly be filled with both opportunities and pitfalls.
Key Takeaways and Questions:
- Who is Brian Shroder and what is his new venture?
Brian Shroder is the former CEO of Binance.US who has founded 1Money, a new company focused on launching a stablecoin network designed for fast payments.
- What was the funding amount for 1Money and who were the investors?
1Money raised $20 million from investors including Tribe Capital and Galaxy Ventures.
- Why did Brian Shroder leave Binance.US?
Shroder left Binance.US amid a legal fight with the U.S. Securities and Exchange Commission (SEC) over allegations of operating an unregistered securities exchange.
- What is the focus of 1Money’s new stablecoin network?
The focus is on fast stablecoin payments, and the network will not feature its own native cryptocurrency.
- How is the stablecoin market currently performing, and what are the future projections?
The stablecoin market is growing rapidly, with Tether and USDC having significant market caps. Analysts predict the market could reach $500 billion by 2025, following nearly 60% growth last year.