Binance CEO Changpeng Zhao announced on Twitter that the foremost crypto exchange would convert the approximately $1 billion remaining from its Industry Recovery Initiative funds to native crypto assets — precisely, bitcoin, ether and BNB.
The cryptocurrencies will be purchased using the exchange’s dollar-pegged stablecoin, BUSD.
Zhao — who is widely known by his initials, CZ — shared that, for transparency, some of the transactions will occur on-chain.
Crypto unbanked
The $1 billion conversions to native crypto assets come amid a banking crisis that captured the United States’ attention over the weekend.
Last night, the New York Department of Financial Services seized what was widely considered the last crypto-friendly bank, Signature Bank, citing systematic risks — effectively cutting the crypto industry off from banks in the country.
The move coincides with the Federal Reserve’s creation of a Bank Term Funding Program, which — on fears of a broader economic impact — will lend money to Silicon Valley Bank and ensure deposits beyond $250,000 are accessible. Silicon Valley Bank’s collapse is the second-largest in the country’s history.
“Took 15 seconds and costs $1.29,” CZ tweeted, citing a movement of funds worth over $980 million. “Imagine moving $980 million through a bank before banking hours on a Monday.”
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Source: https://www.theblock.co/post/219165/binance-converting-1-billion-in-busd-to-bitcoin-ether-and-bnb?utm_source=rss&utm_medium=rss