Institutional and corporate investors contributed to the 40% growth of Binance's crypto exchange this year, according to the CEO.

• Institutional and corporate investors have increased on Binance by 40% this year, as stated by CEO Richard Teng to CNBC's Lin Lin.
• The increasing acceptance of cryptocurrencies among big money investors is evident in their willingness to collaborate with an exchange that faced a U.S. investigation and a $4.3 billion settlement.
• Binance has shifted from a founder-led company to one with a board of seven directors, a structure that regulators are more accustomed to, as observed by Teng.

This year, institutional and corporate investors have increased on Binance by 40%, as stated by CEO Richard Teng in an interview with CNBC's Lin Lin on Wednesday.

Teng stated at the Token2049 conference in Singapore that the allocation of crypto by institutions is still in its early stages, as many of them are still conducting their due diligence. He became CEO in November 2023.

Institutional and corporate investors are showing a significant increase in interest, with a 40% increase in onboarding throughout the year, according to Teng. He did not disclose the names or size of the specific firms involved.

The increasing acceptance of cryptocurrencies among big money investors is evident in their willingness to collaborate with an exchange that faced a U.S. investigation and a $4.3 billion settlement.

Last year, as part of a settlement, Changpeng Zhao, the billionaire co-founder and former CEO of Binance, stepped down. Zhao continues to be a major shareholder, Teng stated.

Binance has shifted from a founder-led company to one with a board of seven directors, a structure that regulators are more accustomed to, as observed by Teng.

In 2021, Binance appointed Teng as CEO of its Singapore operations. Prior to this role, Teng held various positions, including CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market and chief regulatory officer of the Singapore Exchange.

Bitcoin, launched in 2009, laid the foundation for numerous cryptocurrencies that employ blockchain technology. The technology enables direct transactions between two parties without the need for a third-party intermediary, resulting in a secure and permanent record.

More institutions coming in

In January, the U.S. approved the first exchange-traded funds for spot prices of bitcoin. In July, the U.S. allowed trading of similar funds for ether, another cryptocurrency.

Regulatory clarity will provide certainty to mainstream users," Teng stated. He attributed bitcoin's record high earlier this year, above $70,000 in March, to "institutions' entry into the market.

Larry Fink, CEO of BlackRock, has shifted his stance on bitcoin from skeptic to calling it "digital gold."

Other traditional Wall Street investment firms, such as Franklin Templeton, have also launched ETFs for bitcoin and ether, in addition to the company.

In May, Franklin Templeton CEO Jenny Johnson stated on CNBC that the bitcoin gains at that time were a result of "the first wave of early adopters." She predicted that another wave of "much bigger institutions" would soon buy crypto funds.

Bitcoin was trading near $60,440 as of Wednesday afternoon Singapore time.

Teng stated that he would not reveal a specific price forecast, but mentioned that cryptocurrency prices typically increase 160 days after a bitcoin technical event called "halving," which occurred in April.

Teng stated that the market was "160 days away" on Wednesday, nine days from the current date.

This report was contributed to by Ryan Browne, MacKenzie Sigalos, and Jesse Pound of CNBC.