Binance CEO Changpeng Zhao (CZ) has confirmed that the exchange has converted the remaining $1 billion in its industry recovery fund to native crypto assets — including Bitcoin, Ethereum, and BNB.
The transaction was completed during the early trading hours of March 13, according to on-chain data. CZ pointed out how cheap the transaction was and added that:
“Imagine moving $980 million through a bank before banking hours on a Monday.”
Binance set up the industry recovery fund in November 2022 following the collapse of several crypto firms. CZ said the fund is meant to provide liquidity for strong projects facing a liquidity crisis.
Why Binance is converting BUSD
In a March 13 tweet, CZ said the conversion was necessary because of the changes that have affected stablecoins and banks in recent weeks.
The recovery fund was initially in its Binance USD (BUSD). However, recent events have led to the capitulation of several crypto-friendly banks — Silvergate, Silicon Valley Bank, and Signature — and have affected confidence in some stablecoins.
U.S. regulators took control of these crypto-friendly banks citing systemic risks to the broader financial landscape. President Biden said he directed Treasury Secretary Janet Yellen to work with banking regulators to address the problems with these firms.
Meanwhile, the stablecoin BUSD also came under regulatory scrutiny. New York’s financial regulator ordered its issuer Paxos to stop other mints in February.
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