Crypto Giant Binance Exploring Benefits of Bank Acquisition: Report

The largest crypto exchange platform by volume in the world is reportedly looking into the benefits of acquiring banks.

According to a new report by Bloomberg, Binance is weighing the pros and cons of purchasing banking institutions as traditional finance becomes increasingly interconnected with the digital assets industry.

Binance CEO Changpeng Zhao says that the firm is planning on bridging the gap between digital assets and traditional finance.

Zhao made his statements at a crypto conference in Portugal, according to the report,

“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.”

Zhao went on to say that the value of banking institutions tends to increase exponentially as they sign agreements with Binance because the crypto exchange tends to onboard new users to them, something he wants to capitalize on.

“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.”

Previously, Binance said it had set aside about $1 billion to spend on acquisitions. At the time, Zhao said Binance was focused on purchasing troubled crypto lending firms that faced financial hardships due to the bear market that started in May.

Just this week, Binance committed $500 million to billionaire Elon Musk’s buyout of social media giant Twitter, saying that the investment was priceless because social media and Web3 will fuse with Musk at the company’s helm.

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Tithi Luadthong

Source: https://dailyhodl.com/2022/11/03/crypto-giant-binance-exploring-benefits-of-bank-acquisition-report/