Binance CEO Seeks To Bridge The Gap Between Traditional Banking and Cryptocurrency: Here’s How
Venture capital investments have significantly decreased since 2021 due to the $2 trillion market loss brought on by the cryptocurrency inversion, also known as the “Crypto Winter.” Some of the well-known crypto companies in the sector have experienced hardships and turmoil, and many have had to shut shop and declare bankruptcy.
The opportunity to add new businesses to their portfolio has, however, never been better for industry titans like Binance and FTX who have surplus cash on hand.
Acquisitions on the Horizon
Binance, a cryptocurrency exchange, recently made headlines when it announced it’s plans to spend $1 billion on strategic acquisitions this year, piquing the interest of investors already interested in the assets it trades.
Recent news indicates that Binance is actively pursuing the acquisition of banks as a means of bridging the gap between conventional banking and the cryptocurrency business.
Here’s what Binance CEO Changpeng Zhao had to say at the Web Summit conference in Lisbon:
“Various local licenses, traditional banking, payment-service providers, and even banks are all held by individuals. We are taking a look at those topics. We aim to serve as a link between the traditional financial sector and cryptocurrencies.”
The increasing interconnectedness of conventional financial systems and cryptocurrency markets is reflected in CZ’s remarks.
Therefore, it is desirable that the two elements cooperate with one another rather than fostering competition.
For example, BlackRock and Goldman Sachs are two of the largest financial organizations that are actively participating in the cryptocurrency sector.
In spite of the fact that the crypto winter is still running strong, BlackRock made the decision in August 2022 to form a partnership with Coinbase to assist its institutional clients in gaining exposure to digital assets at a price that makes sense.
Binance To Explore Global Territories
According to Binance CEO Changpeng Zhao, the company is willing to consider both complete and partial acquisitions. In addition, he said
“What we have discovered is that when banks partner with us, we bring so many users to them, therefore the bank’s valuation increases enormously. Why don’t we just invest in them as well, so that we can capture some of the equity upsides?”
Zhao was also a key player in the recent Twitter deal as he contributed $500 million to Elon Musk to acquire Twitter. He also stated that he would like to join the Twitter board upon Elon Musk’s approval. Additionally, Binance is ready to offer blockchain-based solutions to address the Twitter bot problem.
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