Binance converts $1B into BTC, BNB, and ETH
The turmoil around stablecoins and banks in recent days prompted Binance chief CZ to convert his crypto rescue fund into Bitcoin, BNB, and Ethereum.
The turmoil around stablecoins and banks in the past few days prompted Binance CEO CZ to shift his industry recovery fund into crypto.
As Binance CEO Changpeng Zhao (CZ) announced on Twitter today, the exchange plans to convert its recovery fund for the industry into cryptocurrencies. According to the statement, the exchange intends to swap about one billion US dollars, held in the stablecoin BUSD, entirely into crypto. According to CZ, it will be BTC, BNB, and ETH.
The Industry Recovery Fund was launched by Binance in the wake of the FTX debacle as a rescue fund for the crypto sector. This consisted of one billion US dollars held in the form of the stablecoin BUSD.
The Paxos-issued stablecoin has in recent weeks however been under scrutinyby U.S. regulators. The company was forced to stop minting BUSD at the urging of the state of New York.
The recent uncertainty in the banking sector and the associated crypto companies also moved the Binance boss to his decision. After the collapse of Signature Bank and Silicon Valley Bank, funds of companies including Coinbase, Paxos, and Circle were at risk. Binance had already parted ways with Signature in January.
If the conversion proceeds as announced, one billion US dollars could flow directly into BTC, BNB, and ETH. This could push the prices of the coins higher, at least in the short term.
