Author: Qin Xiaofeng
Editor: Mandy Wang Mengdie
Publisher: Odaily Planet Daily
Introduction
Cryptocurrency exchanges have long been the most fiercely competitive arena in the crypto trading industry. During bull markets, new exchanges emerge almost daily, only to fade away just as quickly.
"Liquidity" has been the primary challenge for smaller exchanges and the lifeline that top-tier exchanges strive to maintain.
Recently, Binance announced the launch of its cloud services, offering technical and liquidity support to clients looking to establish blockchain-related platforms.
Binance CEO Changpeng Zhao (CZ) stated in an interview:
"For small trading platforms, liquidity is a chicken-and-egg problem. Without liquidity, they cannot attract users."
He also revealed that within the next five years, Binance Cloud is expected to surpass Binance Exchange as the company’s largest revenue source.
Binance Cloud’s Ambition: Surpassing Main Exchange Revenue in 5 Years
Binance has been busy expanding its ecosystem—leading IEOs, venturing into derivatives, launching OTC services, and acquiring dozens of companies. However, the Binance Cloud initiative appears to be a strategic priority.
During a February 7 community livestream, CZ teased the upcoming product:
"Within 10 days, Binance will release a new product—keyword: 'Binance Cloud.'"
Post-launch, CZ reaffirmed his vision:
"In five years, Binance Cloud will replace Binance Exchange as our top revenue stream."
Revenue Context
- Binance’s cumulative earnings exceed $1.23 billion**, averaging nearly **$500 million annually.
- With ecosystem growth, main exchange revenue continues to rise.
What Is Binance Cloud?
On February 17, Binance unveiled Binance Cloud:
A turnkey cloud solution that enables partners to launch independent digital asset trading platforms using Binance’s technology, security, and liquidity.
Key Features
- Quick Exchange Setup: Users provide compliance docs and funds; Binance handles backend setup (3–5 days).
Services Included:
- OTC fiat trading
- Spot trading
- Futures trading
- Pricing Model: Annual fee + revenue sharing.
The first fiat platform is slated for March 2020, with four others in the pipeline.
Market Demand
Why Binance Cloud?
- Liquidity Access: Small exchanges inherit Binance’s deep order books.
- Direct Support: Partners bypass middlemen.
- Security: Binance’s proven infrastructure reduces fraud risks.
- Brand Credibility: "Binance-powered" tag enhances trust.
- Regulatory Alignment: Partners must comply with local laws.
Stats:
- 10,000+ global exchanges; only top 10 are stable.
- Binance serves 15M+ users across 180+ countries, especially in Africa/Southeast Asia.
Competitive Edge
Binance Cloud vs. Traditional Providers
| Feature | Binance Cloud | Competitors |
|-----------------------|------------------------|-----------------------|
| Liquidity | High-depth order books | Limited |
| Support | Direct from Binance | Middleman-dependent |
| Security | Audited, fund custody | Variable |
| Brand Power | Binance-backed | Generic |
Strategic Vision
Binance Cloud is part of Binance’s Open Platform Initiative, which also includes:
- Global Broker Program: 60% fee share for partners.
- C2C Expansion: Targeting 50+ markets in 2025.
He Yi, Binance CMO, metaphorized:
"Binance 1.0 was a towering tree; 2.0 is a forest."
👉 Explore Binance Cloud’s potential
FAQ
Q1: How does Binance Cloud ensure compliance?
A: Partners must submit legal entities and pass Binance’s due diligence.
Q2: Can cloud exchanges list any token?
A: Only Binance-approved tokens; others undergo review.
Q3: What’s the revenue model?
A: Hybrid of annual fees and transaction splits.
Q4: Who benefits most?
A: Emerging markets needing liquidity/tech support.
👉 Learn more about Binance’s ecosystem