BUY, SELL & TRADE CRYPTO
STRATEGIC EVOLUTION
Dru Melidossian on Redefining
Procurement at Binance US
In a fast-moving industry where innovation and regulation collide, procurement can no longer afford to be a back-office function. At Binance US, Dru Melidossian, Director of Strategic Sourcing and Procurement, is leading a transformation that positions procurement as a key driver of agility, compliance, and long-term business value. In this exclusive interview, Dru shares insights into building a lean, tech-enabled procurement function, forging collaborative supplier partnerships, and staying ahead of the curve in the ever-evolving world of cryptocurrency.
Professional Background and Role at Binance US
Can you share your career journey and what led you to your current position as Director of Procurement & Strategic Sourcing at Binance US?
It is an undeniable truth that our personal and professional development is shaped by the experiences we have and the relationships we forge throughout our lives. I consider myself incredibly fortunate to have collaborated with a multitude of talented, dedicated, and professional individuals during my career. Each person—whether they were considered a “good” leader or a “bad” leader— provided valuable lessons that have contributed to my growth.
My early career was rooted in the highly regulated, high-tech manufacturing sector, where I honed my skills in direct commodity management. This experience exposed me to a diverse range of industries, including biopharmaceuticals, aerospace and defense, and medical devices—each with its unique set of challenges and opportunities.
Driven by a strong desire to elevate the strategic importance of procurement and sourcing functions, I made a conscious decision to transition into the wealth and asset management space, where procurement and sourcing were unfortunately often relegated to the back office and viewed as merely administrative functions within many organisations. Over the past 15+ years, I have immersed myself in this industry, working as both a consultant and a practitioner across multiple organisations.
My current role at Binance US represents a perfect alignment of my professional experience and expertise with the company’s needs. I joined the company during a period of rebuilding and was entrusted with the unique and exciting opportunity to re-establish the procurement function from the ground up. This clean slate has allowed me to shape procurement according to my vision, leveraging my extensive experience and industry knowledge to build a best-in-class function that not only meets but exceeds expectations and supports Binance US’s strategic growth objectives.
Digital Transformation in Procurement
With the increasing role of technology in procurement, how is Binance US leveraging automation, AI, and data analytics to optimise procurement processes and enhance decision-making?
Building a Lean and Agile Procurement Function – The traditional model of procurement, characterised by cumbersome and expensive P2P/ERP solutions and complex implementations, is no longer sustainable. At Binance US, we’re taking a lean and agile approach to building our procurement function. By leveraging best-in-class point solutions and strategic partnerships with innovative providers we’re able to optimise our operations without the need for significant headcount expansion.
We are optimising our procurement function through an integration of automation, artificial intelligence (AI), and data analytics across various critical processes. AI is providing deeper insights and enabling more informed decision-making throughout the procurement lifecycle.
Our procurement process is designed with the user experience and operational efficiency in mind. We’ve implemented a clean and intuitive intake system that captures all relevant data in a systematic and intuitive way. This enables us to expedite downstream processes—including approvals, coding, payment, and strategy identification—while ensuring that our decisions are informed by meaningful and rich data.
Data analytics plays a pivotal role in our procurement strategy. By capturing and analysing data at every stage of the procurement process, we’re able to identify trends, optimise spending, mitigate risks, and make informed decisions that drive meaningful business value. Positioning procurement as a growth driver.
Looking ahead, we are committed to future-proofing our procurement capabilities. This is being achieved through a multifaceted approach that includes diligent strategic planning, the continuous exploration and adoption of technological innovations, and an unwavering commitment to the principle of continuous improvement. The goal is to establish a procurement function that not only operates with exceptional efficiency and effectiveness in the present but is also inherently adaptable and resilient to future changes and challenges. This forward-thinking strategy will enable the organisation to remain at the forefront of procurement best practices and consistently deliver optimal results, ensuring long-term organisational value and sustainability.
Strategic Sourcing in a Fast-Paced Industry
Given the rapidly evolving cryptocurrency industry, what strategies do you use to ensure Binance US’s sourcing decisions align with business growth, cost efficiency, and innovation?
In the dynamic and rapidly evolving landscape of cryptocurrency, strategic procurement and vendor selection are of paramount importance. Each purchasing decision and vendor partnership must align with the overarching business strategy and support long-term growth objectives. To achieve this, a collaborative and intentional approach to supplier relationship management is essential.
Strategic sourcing necessitates close cooperation and alignment between procurement teams, business leaders, and budget owners. This collaborative approach ensures that procurement decisions are informed by business needs and budgetary considerations, fostering a sense of shared ownership and accountability.
An agile and flexible approach to procurement is crucial in a fast-paced and volatile market like the cryptocurrency industry. Market conditions, industry trends, and regulatory requirements can change rapidly, and procurement strategies must be adaptable to these shifts. Continuous monitoring of market conditions, supplier performance, and internal business needs enables procurement teams to identify opportunities for improvement and respond proactively to emerging risks.
Collaboration with key suppliers through proactive contract management approach that includes regular check-ins, volume-driven adjustments, and performance monitoring ensures that supplier relationships remain aligned with business objectives and continue to deliver optimal value. In the cryptocurrency market—where innovation and disruption are constant—a collaborative and forwardthinking approach to supplier relationship management can create a competitive advantage and drive sustainable growth.
By embracing a strategic, collaborative, and agile approach to procurement and supplier relationship management, businesses operating in the cryptocurrency market can navigate the complexities and uncertainties of this dynamic industry and position themselves for long-term success.
Supplier Innovation and Collaboration
How does Binance US work with suppliers to drive innovation, particularly in areas like blockchain infrastructure, security solutions, and digital payment processing?
Innovation is the lifeblood of our organisation, and it thrives on collaboration. We are a lean, highly technical team, relentlessly pursuing groundbreaking advancements. Our excellence stems directly from our talented individuals and the strong relationships we forge within the industry. We actively seek out and collaborate with the brightest, most innovative partners to achieve breakthroughs in infrastructure, security, and processing.
We have a clear understanding of our strengths and focus our efforts accordingly. At the same time, we recognise our limitations and acknowledge that others may excel in areas where we do not. We build bridges and foster strategic relationships with those who complement our skills and expertise. These relationships are characterised by daily interaction, collaborative goal-setting, and shared successes and failures. We learn from both our triumphs and setbacks, constantly evolving and improving our capabilities.
While strong contracts that address both standard and unforeseen circumstances are essential, we believe that true partnerships go beyond contractual obligations. We seek out like-minded teams who share our passion for shaping the future of currency and payments. These relationships are built on trust, mutual respect, and a shared vision. Together, we can push the boundaries of what is possible and redefine the financial landscape.
Risk Management in Procurement
The cryptocurrency industry faces unique risks, from regulatory uncertainties to cybersecurity threats. How does your procurement function mitigate these risks while maintaining supply chain resilience?
Risk management within the cryptocurrency space is a multifaceted endeavor, demanding a collaborative approach to navigate both known and unforeseen challenges. This dynamic market characterised by its volatility and evolving threat landscape necessitates a proactive strategy to safeguard assets and operations.
Procurement plays a pivotal role in mitigating these risks by ensuring thorough due diligence on business partners and their capabilities. This involves maintaining vigilant awareness of evolving market trends and emerging players. Through close collaboration with Compliance, Information Security, Legal, and Risk teams, Procurement orchestrates a multi-departmental effort to identify, assess, and minimise potential threats by aligning objectives and providing visibility into the needs and risks of the business.
This comprehensive risk management strategy leverages a dual approach, incorporating both tactical and strategic elements. On a tactical level, the implementation of standardised workflows and the adoption of advanced technologies are essential for facilitating seamless communication, enabling efficient information sharing across departments, and ensuring a rapid and coordinated response to any emerging risks or identified incidents. These tactical measures provide the operational agility required to navigate the fast-paced nature of the cryptocurrency market. From a strategic perspective, the establishment of ongoing communication channels and the maintenance of comprehensive visibility into both internal operational changes and external market developments are crucial for ensuring that risk management protocols remain adaptive, relevant, and aligned with the ever-changing dynamics of the crypto industry. This continuous monitoring and reassessment process allows for the proactive identification of new risk vectors and the timely adjustment of mitigation strategies.
Ultimately, Procurement serves as a vital linchpin within the broader risk management ecosystem. By actively fostering a culture of collaboration, transparency, and shared responsibility, Procurement empowers informed decision-making at all levels of the organisation and facilitates an agile and adaptive response to the fluid risk landscape. This proactive and collaborative approach is not merely a defensive measure but a strategic imperative for sustainable growth and long-term success in the dynamic and often unpredictable world of cryptocurrency.
Technology’s Role in Procurement Strategy
How is Binance US incorporating emerging technologies such as blockchain, smart contracts, and digital identity verification into its procurement and strategic sourcing processes?
The landscape of technology options in the procurement sector has been—and continues to be— characterised by remarkable and rapid advancements. Technology serves as the catalyst that has empowered us at Binance US to implement targeted and effective solutions, yielding near-instant results. These solutions stand in stark contrast to the overly technical and complex systems that were prevalent in the past.
We have witnessed a clear evolutionary trajectory in this domain. We are transitioning into an era defined by highly specialised and focused solutions. These tools are evolving at an unprecedented pace and are redefining competencies within the procurement space. By forging strategic partnerships with a select group of providers, we have successfully scaled our procurement operations without the need to staff the repetitive tasks that often plague larger and more outdated systems. Our procurement stack consists of providers who are not generalists claiming mastery over all areas; rather, they are specialists with deep expertise in specific domains, delivering best-in-class solutions within those areas.
Our relationships with procurement technology providers are characterised by open, two-way communication. We actively seek feedback from our providers and take concrete action based on that feedback. The days of extensive customisation are also behind us. The “that will not work here” mentality that was prevalent in the last decade is no longer relevant. To maintain a competitive advantage in today’s rapidly evolving landscape, it is imperative to adopt a new, more agile and adaptable mindset.
“Ultimately, Procurement serves as a vital linchpin within the broader risk management ecosystem.”
Adapting to Regulatory Changes
The regulatory landscape for cryptocurrencies is continuously shifting. How do these changes impact procurement decisions at Binance US, and what strategies do you use to stay ahead of compliance requirements?
In the dynamic and rapidly evolving cryptocurrency landscape, regulatory compliance stands as the cornerstone of every successful operation. At Binance US, we recognise that our actions must be firmly grounded in a robust regulatory and compliance framework. This encompasses a wide array of critical areas, including Know Your Customer (KYC) protocols, Anti-Money Laundering (AML) measures, tax compliance, volatility management, and meticulous supplier selection. We also prioritise the regulatory management of our suppliers and maintain a keen focus on both regulatory and operational risk. Our commitment to compliance extends to reputation management, recognising that our standing in the industry is intrinsically linked to our ability to uphold the highest standards of integrity.
The cryptocurrency market is characterised by constant regulatory change, necessitating a proactive and agile approach from procurement organisations. At Binance US, our teams remain vigilant and informed about the evolving regulatory environment. We continuously assess the implications of new regulations and proactively adopt strategies that ensure ongoing compliance while positioning us to capitalise on emerging opportunities.
Our diverse workforce and network of strategic suppliers provide us with a wealth of collective intelligence. We draw upon a rich tapestry of experiences, perspectives, and insights to navigate the complexities of the cryptocurrency market. The procurement team plays a pivotal role in bringing together diverse stakeholders to facilitate thoughtful decision-making and effective management. By fostering a culture of compliance, embracing diversity, and maintaining a proactive approach to regulatory change, Binance US is committed to leading the industry in responsible and sustainable growth. We believe that our unwavering commitment to compliance not only protects our customers and stakeholders but also strengthens the overall integrity and resilience of the cryptocurrency ecosystem.
Future Vision for Procurement at Binance US
Looking ahead, what are your key priorities for the Procurement & Strategic Sourcing division at Binance US, and how do you see procurement evolving in the crypto industry over the next five years?
Procurement’s evolution from a traditional back-office function to a strategic partner is essential in today’s dynamic business landscape. This transformation requires a shift in focus from purely operational tasks to aligning procurement priorities with broader business goals. By fostering strong relationships with both external suppliers and internal stakeholders, procurement can optimise processes, reduce operational costs, and drive overall business value.
In the digital age, agility and adaptability are paramount. Procurement must be responsive to evolving business needs, regulatory changes, and customer feedback. While objectives like cost savings, cycle time reduction, talent development, and digital tool implementation remain important, they must be pursued within a strategic framework centered on core business objectives. Consistency in procurement processes is valuable, but it should never come at the expense of adaptability and strategic alignment.
To achieve this alignment, procurement professionals need a deep understanding of the business’s key priorities and how procurement can contribute to them. This means collaborating closely with other functions—such as finance, marketing, and operations—to uncover opportunities where procurement can add value. For instance, procurement can play a pivotal role in supporting new product development by sourcing innovative materials and technologies.
Furthermore, procurement can leverage its expertise in supplier relationship management to drive innovation and enhance product quality. By working closely with suppliers, procurement can identify opportunities to co-develop new products and services that meet the needs of both the business and its customers.
Digital transformation is also critical for procurement’s continued evolution into a strategic partner. By investing in modern digital tools and technologies, procurement can automate routine tasks, enhance data visibility, and enable more informed decision-making. This allows procurement professionals to shift their focus to high-impact strategic activities such as supplier collaboration, innovation, and long-term value creation.
Binance US is a regulated cryptocurrency exchange based in the United States, offering secure access to over 150 digital assets with some of the industry’s lowest fees. Launched in 2019 and headquartered in Miami, Florida, it provides a reliable platform for buying, trading, and staking cryptocurrencies.
Dru Melidossian Director of Strategic Sourcing & Procurement