Binance CEO Wants To Buy Banks

CEO Changpeng Zhao (CZ) is looking into potentially buying banks in order to bridge the gap between traditional finance and cryptocurrency. 

CZ’s Plan For Binance

CZ recently talked about Binance investing in banks during an interview at the Web Summit conference in Lisbon. He acknowledged that the investment would be in order to explore avenues of bringing traditional finance and cryptocurrency closer. However, he did not specify any details other than stating that he is open to minority investments or even a full acquisition. 

He said, 

“There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things. We want to be the bridge between crypto and the traditional, financial world.” 

Furthermore, he also pointed out that working with banks could drive up Binance’s user base and increase its valuation. Thus the investment strategy could work out in favor of Binance’s customer acquisition.

He said, 

“What we have found is when banks work with us, we drive so many users to them, so the bank’s valuation goes up exponentially, like why don’t we just invest in them as well, so that we capture some of the equity upside.” 

Connecting TradFi With Crypto

CZ’s comments indicate the growing interlinking between TradFi and digital assets. In fact, Binance has already had close dealings with several banks. For example, the crypto exchange recently worked with the National Bank of Kazakhstan (NBK) to integrate its central bank digital currency into the BNB Chain blockchain. The exchange has also been granted Class 3 registration with the Cyprus Securities and Exchange Commission (CySEC) as a crypto asset service provider (CASP) in Cyprus. 

Binance’s Bear Market Consolidation

Despite the bear market, Binance and CZ have been making some aggressive investments. The firm has already pledged over $300 million to 67 total projects in 2022 alone. Last year, the invested amount was $140 million, which went towards supporting a total of 73 projects. The crypto exchange has already committed another $500 million towards Elon Musk’s $44 billion Twitter takeover. Clearly, the firm has been leveraging the bear market, making solid investments in projects that it feels will propel the Binance brand. 

Talking about potential investments, CZ has, however, stated that investing in crypto lenders might not be the ideal choice because of multiple issues. He claims that the lenders take over user funds only to hand them over to somebody else without adding any value. Furthermore, he acknowledged that Binance will still focus on market consolidation during the bear market due to the available opportunities. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.