• Binance, the world’s largest digital currency exchange, is converting more than $1 billion of its stable currency BUSD into Bitcoin, Ethereum and other crypto assets.
• This initiative comes following several bank failures that have caused liquidity crises for tech and crypto companies.
• Despite this news, Bitcoin has recently surged 9%, proving its growing strength and stability.
Binance to Convert $1 Billion in BUSD to Crypto
Binance, the world’s largest and most popular digital currency exchange, is converting more than $1 billion of its stable currency BUSD (Binance USD) into bitcoin, Ethereum and various other digital assets. This news was announced in a tweet by CEO Changpeng Zhao with the goal of helping crypto companies and banks that are facing liquidity crises.
Reason Behind The Conversion
The conversion follows several bank failures – such as Silvergate and Silicon Valley Bank – which were friendly towards crypto and tech enterprises. These failures have been labeled among the worst since the 2008 financial crisis and Great Recession. Additionally, it appears Silicon Valley Bank housed the reserves of Circle’s USDC coin – another stable asset similar to BUSD – which temporarily lost its peg to the U.S. dollar when the bank closed its doors.
Bitcoin Surge Proves Its Strength
Despite all this financial turmoil surrounding banks, bitcoin shot up by more than nine percent and added about $3,000 to its price over a few days – proving its growing strength and stability in comparison to other currencies or assets during this time period.
Industry Recovery Initiative Funds
The conversion is part of an Industry Recovery Initiative fund set up by Binance initially meant to aid FTX – an now defunct crypto exchange- out of a liquidity crisis in November 2020 but plans for doing so fell through after Binance looked at the problems FTX was facing and decided they were too big to help with .
The move initiated by Binance speaks volumes about their commitment to aiding those struggling with liquidity crises as well as their confidence in Bitcoin being able to weather any storm due it’s increasing stability within recent times .