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Binance Converts $1 Billion BUSD to Bitcoin, BNB and Ethereum Bitcoin News

On Monday, Binance CEO Changpeng Zhao, also known as CZ, announced that the company decided to divert $1 billion worth of BUSD from the Industry Recovery Initiative fund into three different ones cryptocurrencies to convert Zhao noted that significant onchain movements would be felt after the announcement.

CZ’s decision to convert $1 billion in BUSD comes amid troubles for stablecoins

Binance CEO Changpeng Zhao (CZ) announced on Monday that the company raised BUSD 1 billion in Bitcoin (BTC)BNB and Ethereum (ETH) had converted. “Given the changes to stablecoins and banks, Binance will convert the remaining $1 billion from BUSD’s Industry Recovery Initiative funds into native crypto, including BTC, BNB, and ETH. Some fund movements will take place onchain. Transparency,” Zhao said.

After tweeting the announcement, CZ shared an address for the Industry Recovery Initiative and a transaction explorer link for the wire transfer the exchange was processing. One person replied to CZ’s Twitter thread and called: “People by the youngest stablecoindevelopments will feel much more reassured.” The Binance CEO answered that he “didn’t even think about it like that. I was just talking about keeping the funds in a safe asset. But that’s also possible.”

At the time of writing, Binance holds BUSD 7.56 billion in stablecoins, according to Nansen’s exchange portfolio tool. CZ’s announcement comes as USDC struggled to maintain parity with the US dollar this weekend following the collapse of the Silicon Valley Bank (SVB). Additionally, US regulators forced Paxos to stop issuing BUSD and billions of BUSD tokens have been phased out since then.

While BUSD was under regulatory scrutiny, the stablecoin managed to remain in the $0.99 to $1 range most of the time. On March 11, 2023, BUSD dipped slightly into the $0.9848 area for a brief period, but remained stronger than five other stablecoins that deviated from $1 parity over the past weekend.

What are your thoughts on Binance’s decision to convert BUSD 1 billion into Bitcoin, BNB and Ethereum? Do share your thoughts in the comment section below.

Binance Converts $1 Billion BUSD to Bitcoin, BNB and Ethereum Bitcoin News, Crypto Trading News

Jamie Redman

Jamie Redman is the news director at News and a Florida-based financial technology journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about today’s emerging disruptive protocols.

photo credit: Shutterstock, Pixabay, WikiCommons

Source: Crypto News Deutsch

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