Is Binance buying a bank? According to Bloomberg, crypto exchange Binance is ramping up its game and may go on a purchasing spree. To “bridge the gap” with the young sector, the trading venue may consider purchasing a traditional financial institution.
Changpeng “CZ” Zhao, the company’s CEO, stated his desire to devote more than $1 billion in possible acquisitions in the coming months. The cryptocurrency exchange is adhering to the ancient business adage that “bear markets are for buying and accumulating.”
In an interview at the Web Summit Conference in Lisbon, Portugal, one of the friendlier places for crypto investors due to its 0% tax on digital assets, CZ 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.
Binance buying a bank: Leveraging the crypto bear market
The CEO of Binance feels that purchasing a traditional financial institution would be a “smart move” for the trading platform. The site already works with banks, and many customers have flocked to these traditional institutions to take advantage of the crypto exchange offerings.
CZ feels that banks’ valuations are increasing in this regard. If the institutions are already benefiting, the crypto exchange may seize control of the entire process and reap 100% of the advantages.
According to a different source, Binance has already invested over $300 million to 67 initiatives. The corporation will invest $140 million in 73 projects in 2021. As previously stated, the business expects to deploy more than $500 million in capital.
CZ stated last month the following concerning possible investments, why crypto lenders may not be the best option, and why other industries in the young area may give greater value:
We did look at a lot of lenders in recent months, because that’s where all the issues are. Many of them, they just take a user’s money and give it to somebody else. There’s not a lot of intrinsic value (…) NFT use cases have not largely been well built — NFTs for tickets, for university degrees. I think the technology will stay. Overall at a high level, during the bear market we’ll see more market consolidation. There’s a lot of risks and a lot of pain, but also a lot of opportunity.
Binance collaborates with Elon Musk
The cryptocurrency exchange pledged $500 million to billionaire and entrepreneur Elon Musk in return for Twitter’s takeover. According to CZ, social media has a lot of potential for deeper integration with crypto and digital assets.
CZ told The Times that his partnership with Musk was a “no-brainer.” According to the executive, Binance supports Musk’s free speech cause and strives to increase people’s financial independence. According to the executive, the two causes are connected. CZ also stated:
We’re very long-term investors so we anticipate to be involved in the next 10 to 50 to 100 years. We’re not bothered by short term; we don’t care about that. We care about long-term potential for the platform, and with Twitter plus Elon? Independently, they have a lot of potential, but combined, there is such high potential. Ten to 20 years from now, we’re very confident that this will be a much stronger platform than Twitter yesterday.
Binance buying a bank might be what the crypto world needs when it comes to more legitimacy. We have some other crypto related articles like Crypto influencers might face charges, if that’s your fancy.
What is Binance?
Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software. Binance was initially based in China, but later moved its headquarters out of China.